AMD Ryzen CPU revenue is expected to decline 26% in 2022 due to Intel ’s resurgence in the segment with 12th Gen Alder Lake CPUs.
AMD Ryzen CPU revenue will decline in 2022, the PC market slows down, and motherboard manufacturers have also lowered shipment forecasts
In recent market analysis, AMD's PC market revenue (mainly including its Ryzen CPU) may experience a sharp decline. Analysts predict AMD's revenue could drop 26%, and there are a number of factors that could lead to this happening.
Not only is the PC market generally in decline in 2022, but its successful recovery with Intel's 12th Gen Alder Lake CPUs has also given AMD some serious competition in the mainstream market. As a result, AMD's Ryzen CPU revenue is expected to decline year over year. The company will make some gains starting later this year with the launch of its first Zen 4 products, Ryzen 7000 CPUs and more options for a long-lasting AM4 platform. Therefore, the company is expected to enter a relatively stable period after the decline in market revenue in 2023.
AMD PC-related revenue will decline 26% year over year in 2022 and 2% in 2023, losing some market share due to the success of Intel's Alder Lake processors in the gaming market. AMD should see "relative stability thereafter."
AMD didn’t offer a mainstream option for AM4 users until Intel launched its 12th generation Alder Lake CPUs. As a result, they get off to a slow start, which may affect them. But it looks like even motherboard makers are not optimistic about the PC market in general, and have cut their forecasts for 2022. Asus is expected to ship 14 million units in 2022, while Gigabyte is expected to ship 9.5 million units. This contrasts with the 18 million and 13 million units shipped by each manufacturer respectively last year.
Asus expects motherboard sales to fall 24%, while Gigabyte expects a 27% decline in 2022. The entire motherboard market will drop from 40 million yuan to 30 million yuan. The market may see a small boost due to the launch of AMD's Ryzen 7000 and Intel's 13th generation desktop CPUs later this year, but the PC DIY market is expected to remain tough until the end of 2023 due to rising inflation. The table below shows the difference in motherboard shipments from 2019-2022
Although prices and supplies of various components are returning to normal, it may take a while for the market to recover, and it may take some time for consumers to re-energize their interest in desktop computers Interest in the field of .
Despite enjoying several years of market share gains, AMD Ryzen desktop CPU revenue is now expected to decline in 2022.
AMD Ryzen revenue is likely to plummet this year due to a mix of factors within the industry. The PC market is generally in decline in 2022 (which itself is caused by various issues), and competition has been fierce as fewer people want to buy consumer-grade desktop CPUs.
Unfortunately for AMD, Intel's 12th Gen Alder Lake processors are extremely popular, and with AMD lagging behind on next-gen releases, it doesn't look like DIY PC gamers want to wait for Zen 4 to arrive.
Recent rumors suggest that AMD's upcoming Ryzen 7000 desktop processor may launch in mid-September, which may also be attributed to declining sales of Ryzen 5000 CPU - after all, few people want to before the product is about to go on sale. Purchase it replaced.
That said, there's a lot of inventory, and once the Ryzen 7000 chips debut, it's likely that the previous generation processors will see a nice price cut to clear out inventory, which will be great for those looking for a bargain on a tight budget.
However, if AMD wants to get ahead of the game, it needs to release Ryzen 7000 before Intel brings Raptor Lake to the market. When the Ryzen 5000 series processors first came out, they were considered the best option for PC gamers—who accounted for a sizable share of the DIY PC market—and it simply couldn't afford to lose that market.After all, it attracts a loyal fan base, but you can't sell yourself on fan expectations alone.
Other industry factors may come into play and affect either party, regardless of who has the better product. Motherboard sales are expected to drop significantly this year, with Asus and Gigabyte (which account for about 70% of the total market) expecting sales to be down about 25% from 2021 levels.
GPU bundles that include motherboards are said to be partly to blame for consumers essentially being forced to buy unnecessary hardware just to get an Nvidia Ampere or AMD RDNA2 graphics card. You'd assume that with AMD Ryzen 7000 requiring AM5 motherboards later this year (and Intel's 13th Gen Core processors requiring new 700 series motherboard chipsets), we could see an increase in sales.
It will be quite difficult to bring a processor to market when the motherboards required to use it are not expected to sell well. No matter how many rumors are floating around right now, the best thing to do is probably just...wait and see.
