Despite enjoying a few years of increasing market share, AMD Ryzen desktop CPU revenue is now predicted to drop by around 26% in 2022, with the success of Intel’s Lake Alder being touted as one of the likely ones. causes.
As reported by WCCFTech (opens in new tab), Joseph Moore, Market Analyst at Morgan Stanley (opens in new tab), states that AMD Ryzen revenue could plummet this year due to a mix of various factors within the industry. The PC market saw an overall decline in 2022 (which itself was caused by a number of issues) and with fewer people looking to buy consumer-grade desktop CPUs, competition has been fierce.
Unfortunately for AMD, Intel’s 12th Gen Alder Lake processors have been extremely well-received, and given that AMD is behind on high-end releases, it seems like people building a PC don’t feel like waiting for Zen to arrive. 4.
It’s not all doom and gloom though. While Moore also predicts a further 2% drop in revenue for AMD Ryzen in 2023, this is being seen as a market correction, with AMD expected to see “relative stability thereafter”. AMD is also making gains in other areas of the business, like servers and laptop processors, so while that likely hurts, it’s far from the end of days for Team Red.
Analysis: AMD needs to pick up the pace
AMD’s Ryzen 7000 desktop processors could launch in mid-September, according to recent rumors, which can also be attributed to declining sales of Ryzen 5000 CPUs – after all, few people want to buy a product just before it’s replaced. .
That said, there’s reportedly a lot of ‘excess’ stock out there, and once the Ryzen 7000 chips are revealed, the previous generation of processors is likely to see a decent price reduction to clear the stock, which is great news for those on a tight budget looking for a bargain.
If AMD wants to get a head start, it will need to release the Ryzen 7000 before Intel pushes Raptor Lake to market. When the Ryzen 5000 series processors arrived, they were heralded as the top choice for PC gamers – who make up a sizable part of the DIY PC market – and they just can’t afford to lose that reputation. After all, this attracts Team Red’s loyal fanbase, but you can’t sell yourself on fan expectations alone.
Other industry factors can come into play and affect either party, regardless of who has the best product. Motherboard sales are expected to plummet this year, with Asus and Gigabyte (which account for approximately 70% of the entire market) estimating sales volumes to drop by approximately 25% compared to 2021.
It’s being claimed that GPU packages that contained mobos are partially to blame, as consumers were essentially forced to buy unnecessary hardware just to get their hands on an Nvidia Ampere or AMD RDNA2 graphics card. You would assume that since the AMD Ryzen 7000 will require AM5 motherboards later this year (as well as Intel’s 13th Gen Core processors requiring new 700-series motherboard chipsets), we could see an increase in sales, but a recent report from DigiTimes (opens in new tab) suggests otherwise.
It is going to be quite difficult to sell processors in a market when the motherboards needed to use them are expected to be sold in lower than expected volumes. Regardless of all the current rumours, the best course of action will likely be just… wait and see. We have no idea if all the hype on both sides will live up to expectations, so while it’s tempting to jump into an update right away, just wait until we hear some solid performance data.
