- Intel raised the cost of its new Core Ultra 200S Plus desktop processors only two days after they launched.
- The price hikes, ranging from 8% to 17%, undermine Intel’s original goal of offering high multi-core performance at a budget-friendly price point.
- Mobile CPU prices are expected to rise by 15%, likely leading to more expensive laptops for consumers.
Intel’s Latest Arrow Lake Refresh CPUs (Core Ultra 200S Plus) have seen their prices increase by just 48 hours after their launch. These processors arrived with a clear goal: to offer highly attractive pricing for the multi-core performance they deliver.
Intel introduced the Core Ultra 7 270K Plus at a suggested retail price of $299, while the Core Ultra 5 250K Plus was priced at $199. The concept was simple to be more powerful than its predecessors, at considerably lower pricing, which is not the case now.
Despite the goal to have a “great price-to-performance ratio,” these processors’ prices increased within 48 hours. The Intel Core Ultra 7 270K Plus increased from $299 to $349.99, while the Core Ultra 5 250K Plus increased from $199 to $219.99.
Models without integrated graphics also saw price increases, with the 250KF Plus priced at $199.99, the same as the model with integrated graphics. The recommended price lasted only 48 hours after its inception, and prices were automatically changed.
Just a few weeks ago, Intel announced a 10% increase in the price of its consumer desktop processors. In some cases, the rise could be substantially greater. The Core Ultra 7 270K Plus, in particular, saw a 17.1% price increase, while the 250K Plus and 250KF Plus saw more modest increases of 10.5% and 8.1%, respectively.
This will also affect laptops, as these CPUs will now cost 15% more. This indicates that laptop makers may need to change their prices again in the near future. If they are successful in selling off their inventory, they will be forced to purchase more expensive processors and pass the cost rise on to customers.
AMD’s strategy is the same: increase prices. Both companies have increased their processor production costs while producing fewer consumer processors, resulting in an artificial shortage of available models and quantities. Both businesses are targeting the AI data center industry. These CPUs are not only substantially more expensive and profitable, but they are also selling practically all of their inventory. This is in stark contrast to the consumer CPU market, where stocks are building up due to a slowing market.
According to Intel’s specifications, the recommended retail price for Intel products is a guideline only, and costs may vary depending on format, volume, and distribution channel. Essentially, this is what we have come to anticipate from the GPU industry. That is, a suggested price that, in this case, was valid for only 48 hours.
At least in the United States, this CPU is no longer available for the recommended price. For the time being, the costs of these Intel Core Ultra 200S Plus CPUs in European countries like Spain have not changed. But, given the circumstances, this may alter quickly.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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