Despite enjoying several years of increased market share, it is now predicted that AMD Ryzen desktop CPU revenue is expected to decline by about 26% in 2022, citing the success of Intel’s Alder lake as one of the possible reasons.
As reported by WCCFTech (Opens in new tab), Joseph Moore, market analyst at Morgan Stanley (Opens in new tab), Claims that AMD Raisen’s earnings could decline this year due to a mix of different factors within the industry. The PC market saw a general decline in 2022 (which in itself was due to various problems), and with fewer people buying consumer-grade desktop CPUs, the competition has intensified.
Unfortunately for AMD, Intel’s 12th-gen Alder Lake processors were very well received and since AMD is lagging behind with next-gen releases, it will appear that people making a PC don’t feel like waiting for the Zen 4 to arrive. .
Although it’s not all doom and gloom. Although Moore predicted an additional 2% revenue decline for AMD Ryzen in 2023, seeing it as a market correction, AMD predicts seeing “relative stability after that”. AMD is also gaining ground in other areas of business, such as servers and laptop processors, so while it’s probably stinging, it’s far from the end of Team Red’s day.
Analysis: AMD needs to increase its speed
According to recent rumors, AMD’s upcoming Ryzen 7000 desktop processors could be launched in mid-September, which could also be responsible for the decline in sales of the Ryzen 5000 CPU – after all, very few people want to buy a product just before it leaves. .
That said, there are allegations that many ‘excess’ stocks are hanging, and once the Ryzen 7000 chips are unveiled, perhaps the next generation of processors will see a decent price reduction to clear the stock, which is great news for them. Looking for a bargain on a tight-budget.
Although AMD wants to get a head start, it will have to release the Ryzen 7000 before Intel can bring Raptor Lake to market. When the Ryzen 5000 series processors first came out they were touted as the best choice for PC gamers – who make up a large share of the DIY PC market – and it just couldn’t lose that reputation. It plays into what attracts Tim Red’s loyal fanbase, but you can’t sell yourself on the expectations of fanboys alone.
Factors in other industries can be effective and can affect both parties, regardless of who has the best products. Sales of motherboards are expected to take a huge hit this year, with both Asus and Gigabyte (which account for about 70% of the entire market) sales volume is projected to decline by about 25% compared to 2021.
It is claimed that mobos in GPU bundles are partly responsible because customers were only forced to buy unnecessary hardware to get their hands on a Nvidia Ampere or AMD RDNA2 graphics card. You would expect the AMD Ryzen 7000 to require an AM5 motherboard later this year (as well as a new 700-series motherboard chipset for Intel’s 13th-Gen Core processor), but we’ve seen sales growth, but A recent DigiTimes report (Opens in new tab) Advises otherwise.
Processors are going to be fairly difficult to sell in the market when the motherboards needed to use them are predicted to sell in small quantities. Regardless of all the current rumors floating around, the best course of action might just be … wait and see. We have no idea if all the hype on both sides will meet expectations, so when it’s tempting to jump into an upgrade right away, wait until we hear some solid performance data.
