Unexpected Intel Chip Sales Trend: Old Processors Outsell Newer AI Chips
Here's something you might not believe. Intel just made some unexpected news. It appears their previous generation chips are selling faster than ever before. They are actually performing *better* than their brand-newest releases that have all those new AI features. It appears this trend has caught the company somewhat off guard. It even creates somewhat of a tight pinch on manufacturing capacity for those older, but still in-demand, chips.
Robust Demand for "Intel 7" Chips
At an investor conference, Michelle Johnston Holthaus, who leads Intel's customer group, cited the robust demand for "Intel 7" chips as a surprise. If you are wondering which ones those are, we are talking about the Alder Lake and Raptor Lake families. Basically, the chips of the last two generations before the latest ones emerged.
As Holthaus lays out, this vast craving for the older ones has actually resulted in a production bottleneck. They simply didn't anticipate producing so many of these chips while the newer ones with AI were being released.
Why the Older Tech is Preferred
So why is this. Holthaus quoted "macroeconomic concerns" as the main cause. It seems that in the current economic climate, consumers are keeping their purses shut.
She continued to point out that the newer Meteor Lake and Lunar Lake processors, the ones that cram in those unique AI features, cost more. This is both for the individual consumer buying a PC and for those computer design companies (OEMs). Essentially, most consumers simply aren't yet seeing any value in paying more for AI features *currently*. They're opting for the established, if slightly less expensive performance of the older chips instead.
What Does This Mean for Future Chips
Even in the face of this surprising trend, Intel appears certain that their AI chip investment will ultimately bear fruit. They remain convinced this new series of processors will have commercial success. They also realize, however, that the heavy demand for their established, traditional processors will most likely persist into the foreseeable future. So while the future may indeed be AI-focused, it would appear that the current era still has plenty of space for dependable performance.
