PC market slows ahead of anticipated Intel price cuts

Users looking for a new PC might want to wait for a round of price cuts that are expected soon from Intel, according to analysts and Intel partners.

Users looking for a new PC might want to wait for a round of price cuts that are expected soon from Intel, the world's largest maker of microprocessors.

Component vendors and analysts in Taiwan say the company may announce such reductions in July, and the PC market has already slowed down in anticipation of the move. The microprocessor is one of the most expensive parts inside a PC, so price reductions could have a big impact on the price of an overall system.

Taiwanese companies often know inside information about the PC industry, such as about upcoming chip launches or price reductions, because they make many vital components for PCs and need to know about upcoming technical or business changes in order to prepare new products. Taiwanese companies hold over three quarters of the global market for computer motherboards.

Intel announced its most recent price reductions on June 4. It regularly updates its price lists because older processors usually fall in price as it introduces newer ones.

The company says it hasn't made any formal announcements about a price reduction in July. "There has been no announcement, but I believe everyone has speculated on that," said Nick Jacobs, a corporate communications manager for Intel in Singapore. Intel is often the subject of rumors and speculation, he noted.

Whether the current talk turns out to be real or speculation, it has caused demand for a host of PC components, including memory chips and LCD (liquid crystal display) screen panels, to slow. That's because PC vendors don't want to have built up a backlog of PCs with more expensive processors if Intel is about to cut prices.

"Overall DRAM demand remains minimal, as PC demand has been postponed since Intel had foretold its July price reduction," said market researcher DRAMeXchange Technology Inc, in a report on Tuesday.

Meanwhile, prices of LCD panels used in laptops and desktop monitors fell by 3 percent to 5 percent in the second half of June, according WitsView Technology.

A reduction in microprocessor prices could produce bargains for users looking for a new PC. Lower prices could allow PC makers to pass the savings directly on to users, or enable them to add more goodies to a PC, including more memory, a larger hard drive or a flat display screen, without increasing the price of the system.

Part of the reason people believe Intel will slash prices is due to stiff market competition with rival Advanced Micro Devices. The two companies have been in a pitched battle over the past year, with AMD gaining some market share on its rival and even winning a key new customer, Dell. The world's largest PC maker used to exclusively use Intel microprocessors, but recently announced it would use AMD processors in some servers.

Another reason Intel might cut prices would be to make way for its upcoming family of powerful and more energy-efficient Core 2 Duo microprocessors, said one component maker. As the company releases new microprocessors, it usually slashes prices on older models in order to clean out its inventories.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?