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Intel's New Desktop PC Processors to be Available From Oct 5

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Intel Corp. (INTC - Free Report) recently announced that its 8 Generation desktop processors will be available in the market from Oct 5, 2017. These processors are primarily aimed at gaming and overclocking customers who need faster computing speed.

The processor family consists of upgraded versions of Core i3 to Core i7. It includes 6-core Core i5 and 4-core Core i3 desktop processors as well as Core i7-8700K. This is reportedly Intel’s best desktop processor with a 4.7 GHz maximum single-core turbo frequency and is touted as an apt processor for single and multithread based applications.

Notably, supported by Intel "Z370" chipset-based motherboards, the new chipsets are capable of editing 4K 360-degree videos at a 32% faster speed compared with the prior edition. Moreover, the addition of unlocked "K" processors that deliver high level of tuning flexibility has made the new launch even more lucrative.

PC Gaming Market Growth to Boost Chip Sales

In a recent article, PC Gamer quoted Gartner, which predicted that sale of gaming PCs will increase from 6 million units in 2016 to 8.7 million units in 2020. These will contribute to around 13% of the entire PC shipment revenues.

Moreover, per Jon Peddie Research, the PC gaming industry is anticipated to witness CAGR of 6% through 2019. The optimistic projections driven by strong demand for gaming PCs bode well for Intel’s next-generation desktop processors.

The launch of game-focused processors comes at an opportune time for the chipmaker. Intel is facing stiff competition from a resurgent Advanced Micro Devices Inc. (AMD - Free Report) and NVIDIA Corporation (NVDA - Free Report) in most of its operating segments including PCs. In the mobile segment, the company has failed miserably against Qualcomm Inc. (QCOM - Free Report) .

Recently, Digitimes reported that Intel has delayed the release of some of its next-generation Cannon Lake-based processors, mostly the ones with an integrated GPU, to the end of 2018. These processors reportedly ensure 25% improvement in performance and consume 45% less power compared with the existing 14 nm Kaby Lake processors.

We believe that the delay in Cannon Lake release will hurt notebook sales in the near term. Some Intel partners are speculated to skip Canon Lake for the next-generation Ice Lake CPUs. This may hurt the company’s top line as PC sales continue to remain sluggish per the data available from Gartner.

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