American tech giant Intel Corp. is reportedly releasing its chips at a discount in a bid to put pressure on the supply-constrained market, according to a report.
- Intel can leverage its vertical integration, as its development and manufacturing are almost entirely in-house, and it manages its own supply chain. Its top-line figures also allow it to tweak final client pricing.
- The move is in a bid to attract clients from Advanced Micro Devices Inc., which has fewer revenue sources and does not have its own plants to produce its Zen chips. ADM has market penetration has surged to 60% as of June 2021.
- With Intel having more options to address pricing issues, the company is working to make products more attractive for clients to return to its fold or to skip AMD. It is also looking to capture the unserved demand.
While AMD has disadvantages when compared with Intel, the firm is said to be normalizing its CPU supply. INTC is up 0.60%, while AMD is up 0.44% premarket.