Why are we seeing less Intel processors?

Intel has been grappling with a CPU shortage for months, due to production constraints associated with its difficult 10nm ramp as well as increased demand for its 14nm data center processors. The company announced during its last conference call that it would spend an additional $1B to increase 14nm production.

Despite this additional amount being spent on the production of Intel’s current 8/9th generation processors, even in late 2018 we are still seeing to long term effects of this shortage and processor prices are the highest we have seen all year.

Despite Intel’s spending and efforts to reduce the backlog of orders on their 14nm processor line, they have still had to push back some of their equipment from 10nm production in order to keep up with demand.

This decision also has the potential to also effect the production of 10nm chips as we come into Q1 of 2019, However Intel has strongly suggested that by this time their production should be back on track and the steady roll out of 9th Generation processors should run smoothly.

Due to the reduced production the prices of Intel processors have been steadily increasing as the year has gone on. Upon the initial release of AMD’s Ryzen series processors back in April we quoted the following:

“For most people Intel is currently better than AMD. The general performance of a 3.6GHz AMD Ryzen 1800X CPU compared to a 7th Generation 4.2GHz Intel Kaby Lake Core i 7 7700K CPU is slightly weaker, and yet the AMD processor costs hundreds of pounds more than the Intel equivalent. “

That statement is now completely reversed, AMD now have some of the lowest processor prices on the market, they have no issues with production or supply of the chips and cost a few hundred pounds less than similarly performing Intel processors.

Despite the issues Intel are having with their production we are still able to stock and provide certain models on a special order basis in the 7/8/9th Generation, however at this stage our prices are changing on an almost weekly basis.

The current pricing is as follows;

7th Generation:
Intel i7 7700K – £420

8th Generation:
Intel i3 8100 – £130
Intel i5 8400 – £233
Intel i5 8600 – £294
Intel i5 8600K – £307
Intel i7 8700 – £403
Intel i7 8700K -£468

9th Generation:
Intel i5 9600K – £295
Intel i7 9700K – £456
Intel i9 9900K – £620