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Home / Technology / Intel's Smart Plan to Increase Desktop Processor Prices – The Motley Fool

Intel's Smart Plan to Increase Desktop Processor Prices – The Motley Fool



In the second quarter of 2018, the chip giant Intel (NASDAQ: INTC) reported that the client database business, which makes the bulk of the money by selling processors and products that complement personal computers, Intel achieved a turnover of almost 6.3%.

Interestingly, Intel reported that desktop desktops shipped 9% year after year (Intel says platforms "contain different components and technologies, including a microprocessor and chipset alone [system-on-a-chip] or a multi-chip package"), but average Stage platform sales prices rose 1

3% for a net increase of 6.4% in desktop platform sales in the quarter.

  Two Intel desktop processors (backside at </p>
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<p>  "Source: Intel. </p>
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<p>" Our revenue in Q2 2018 and in [year-to-date] 2018 increased from strong demand in commercial and gaming market segments, and increased demand for our high performance processors that more than compensated the volume downturn, "Intel explained in its form 10-Q filing with the Securities and Exchange Commission. </p><div><script async src=

With its forthcoming processor processor line, expected to be sold as the company's ninth generation Core processors, Intel is making a move which can help drive its average selling price on desktop platforms, and furthermore revenue from desktop platforms goes on. Let's take a closer look.

Introduction to Core i9 for Regular Desktops

Traditionally, Intel has offered the following three tier of its Core processors for both portable and desktop processors: Core i3, Core i5 and Core i7.

Back in 2017, With the launch of Its current high-end desktop processors, introduced the company Core i9 branding tier. Intel later broke the Core i9 brand of its highest end portable processor, Core i9-8950HK, used in premium gaming-oriented laptops and the best configuration of Apple s (NASDAQ: AAPL) last 15-inch MacBook Pro.

However, the company's common desktop processors (the chips that make up the vast majority of Intel's desktop processor sales) are currently only topped on the Core i7 – which will change when the company launches its ninth-generation Core processors later this year. (The latest rumors point to a launch in October).

Take a look at the following slide published by XFastest (via PC component news site VideoCardz)

  An Intel product map card.

Image Source: XFastest via VideoCardz.

Note in this slideshow is Intel's current Core i7-8700K, the highest end of the regular desktop processor, in the product package "P1K" – the highest level as in the second quarter of 2018. How do you move a column over, Do you see that Core i7-8700K is replaced by a part known as Core i7-9700K in the same "P1K" level.

The new is that Intel introduces a new product level over P1K / P1 – P2K / P2. The highest device model listed is Core i9-9900K, which will be the first regular Intel processor processor to carry Core i9 monics. There is also a virtual assurance that the processors in the P2K / P2 levels will be more expensive than their P1K / P1 colleagues.

Potential Impact on Intel's Business

The good news for Intel is that the major players in the personal computer ecosystem have an incentive to move systems with the Core i9 chips in the upper part. For example, Apple charges an additional $ 300 for a 15-inch MacBook Pro with a Core i9 processor compared to a similar model with a Core i7. Everything that can help system vendors like Apple collects that premium seems positive for Intel.

Furthermore, personal computers are often sold in retail. Not only do the companies that manufacture computers, sell customers on higher computers, but retailers of these computers will likely sell the highest products they can, so it means more income for them.

Finally, Intel's goal to introduce the Core i9 brand into parts of the product lines is to make it easier for manufacturers and distributors to sell higher prices, with higher Intel processors, to end users. When Intel's ninth-generation Core processors launch for the desktop, please keep in mind the desktop platform's average sales price development reports the company in quarters as follows.

Ashraf Eassa has no position in any of the aforementioned shares. Motley Fool owns shares of and recommends Apple. Motley Fool has the following options: long January 2020 $ 150 call on Apple and short January 2020 $ 155 appeals to Apple. Motley Fool has an information rules.


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