Intel PC CPU Prices May Rise, Small Core May Exit

According to supply chain sources, Intel is reportedly planning another price increase for its PC CPUs in early October, with prices expected to rise by around 10%. At the same time, the company is reportedly reassessing its low-margin product portfolio, with some Small Core products potentially being moved toward end-of-life (EOL) status as Intel seeks to improve overall profitability.

Intel has reportedly adjusted PC CPU prices several times since late 2025. Prices increased by around 10% in the first quarter of 2026, while some consumer and server CPU models were reportedly raised again in July, with increases ranging from tens of dollars to more than $1,000 for certain products. Supply chain sources suggest that rising costs for components such as memory and PCBs, combined with tight supply for some CPU products, are prompting Intel to place greater emphasis on average selling prices (ASP) and gross margins rather than competing primarily through lower prices.

On the product strategy side, supply chain sources indicate that low-margin products, including certain Small Core CPUs, could potentially be included in Intel's EOL plans. The impact may be more significant in long-life markets such as industrial PCs (IPCs), Internet of Things (IoT) devices, and embedded systems rather than mainstream consumer PCs. These markets typically place greater emphasis on cost, power consumption, long-term availability, and platform stability, while some products may generate relatively lower margins.

Industry observers expect that if Intel reduces its portfolio of low-margin CPU products, ARM-based chipmakers such as Qualcomm and MediaTek could gain additional opportunities, particularly in industrial PCs, edge computing, and IoT applications. ARM-based SoCs offer advantages in areas such as integration and power efficiency, which could make them increasingly competitive in these markets.

On the server CPU side, Intel's own wafer fabs are reportedly prioritizing server products, but capacity remains tight and is putting additional pressure on PC CPU production. If Intel further expands server CPU output, it may need to increase its reliance on external foundry capacity. As a result, the development of Intel's 18A process, including yield improvements, as well as progress on its 14A process, is expected to remain a key focus for the supply chain.