AI bust — Intel plans to hike 13th Gen CPU prices years after launch as interest for new Core Ultra chips fails to ignite

by

As an analyst, I’m seeing AI branding and features *everywhere* in the PC market – on new computers and individual components. But surprisingly, initial data suggests that consumer demand for these AI-powered features isn’t as high as the industry seems to believe.

A new report suggests that desktop computer users aren’t rushing to buy Intel’s latest processors with built-in AI capabilities. In fact, older Intel processors without these AI features seem to be more popular right now.

According to sources familiar with Intel’s supply chain, the company intends to raise prices on its 13th Gen Raptor Lake processors by over 10%. This price increase is happening despite the fact that Intel’s newest Core Ultra processors are now widely available.

Intel’s Raptor Lake processors for desktops first launched in 2022 with six different models. The company then expanded the lineup throughout 2023, culminating in the release of the Core i9-13900KS.

We anticipate these price adjustments will take effect in the last three months of 2025. While the report doesn’t detail which specific chips will be affected, it suggests prices will rise from around $150-$160 to approximately $170-$180.

Based on current prices, the expected increase in cost will probably affect the 13th Gen Core i3 and Core i5 desktop processors.

If Intel increases prices on its higher-end processors, like the Core i7-13700K (currently around $345) and the Core i5-13400 (around $199), we could see those prices rise to approximately $380 and $220, respectively.

Why is Intel raising prices of its older CPUs?

While it might seem unexpected, Intel’s recent price increase for older 13th Gen desktop processors actually fits with their overall CPU strategy and what’s happening in the market right now.

According to a report from Digitimes, consumers haven’t shown as much interest in AI PCs as anticipated. Intel heavily promoted the AI and productivity features of its latest “Arrow Lake” processors, but the launch hasn’t had the impact the company hoped for.

Intel leaders have openly admitted that the Arrow Lake generation didn’t go as planned. Intel’s Chief Financial Officer, David Zinsner, recently said the company “made a big mistake” with Arrow Lake.

We didn’t do as well as expected with desktop computers, especially the more powerful models. When looking at revenue instead of just the number of computers sold, our performance appears weaker, largely because we lacked a competitive high-end desktop offering this year.

Even Intel’s CEO, Lip-Bu Tan, has admitted that the Arrow Lake processors aren’t strong enough to compete, confirming reports that they didn’t offer a good balance of price and performance.

Because older Intel Raptor Lake processors are a great value and people are already familiar with them, many are choosing those over the newer Core Ultra chips and their artificial intelligence features.

Intel is facing significant challenges, leading the US government to invest $8.9 billion in the company and acquire a 9.9% ownership stake.

Didn’t Intel just announce discontinued support for 13th Gen GPU drivers?

Intel and NVIDIA, traditionally competitors, have joined forces. They announced on September 18th a plan to create new computer chips that combine Intel’s processing power with NVIDIA’s graphics capabilities.

NVIDIA is investing $5 billion in Intel through a new partnership. This collaboration will result in the creation of new processors, called “Intel x86 RTX SOCs,” which will combine processing and graphics capabilities in a way that’s similar to AMD’s current processors.

Shortly after revealing the partnership, Intel announced it would be moving older laptop and desktop processors – specifically those from the 11th to 14th generations – to a support model for older products.

From now on, these chips will only get essential security and bug fix updates. The graphics processors built into them will also be updated less often – every three months instead of monthly – and won’t support new game releases on their launch day.

Are Intel’s 13th Gen “Raptor Lake” chips still relevant today?

Intel’s 13th Generation processors were a real success, so it’s not surprising they’re still in high demand. The latest Intel CPUs don’t offer a significant boost in gaming performance, making the older generation remain a popular choice.

As I said before, Intel’s Core Ultra chips are heavily focused on boosting productivity and AI capabilities. This means that if you’re primarily a gamer or don’t need AI features, older Raptor Lake processors remain a great option. The only real downside is a slightly weaker integrated GPU, but that won’t matter much if you already have a dedicated graphics card.

The editor-in-chief of Windows Central recently reviewed the Core i5-13600K and declared it the clear frontrunner for the best mid-range desktop processor.

Rich Edmonds, a former editor at Windows Central, described the Core i7-13700K as a powerful processor that’s great for both gaming and productivity.

(via Tom’s Hardware)

Stay up-to-date with the latest from Windows Central by following us on Google News! You’ll get all our news, insights, and features right in your feed.

Read More

2025-09-26 17:10