Based on an internal report from AMD, we were able to find out that the company plans to cut it Ryzen 7000 “Zen 4” CPU production plan.
PC market downturn and poor reception for AM5 platform? AMD plans to cut Ryzen 7000 ‘Zen 4’ CPU production plan
The report, citing AMD’s internal management, notes that the red team plans to cut production of its Ryzen 7000 “Zen 4” CPUs amid a downturn in the PC market and overall poor reception for the AM5 platform. While the AM5 platform is still new, AMD expected that it would succeed in capturing the interests of users with a slew of features such as support for DDR5 and PCIe 5.0 technologies, but in return it raised the prices of motherboards and even the entry-level B650 series that were recently introduced It failed to reach the $125 promised by AMD.
The report also states that enthusiasts are what is keeping AM5 afloat at the moment and the Ryzen 9 7900X has become the best/best seller with its reported sales being the highest among the entire Zen 4 range. The $549 US chip looks more attractive than the Ryzen 7 7700X ($399) and Ryzen 5 7600X ($299). This statistic is not based on retailer-specific sales but instead on global shipments and retail numbers.
The reason for this is that most novice buyers can only go in and upgrade to a Ryzen 7 5800X3D on their existing AM4 platform if they want better gaming performance. For them, the Zen 3 8 cores still deliver decent multi-threading performance while the performance of 3D V-Cache game accelerators exceeds 12900K. Now, there has been an increase in talks regarding a possible X3D launch simultaneously on the AM4 and AM5 platforms. AMD is already preparing to launch the Ryzen 7000 3D V-Cache which should be announced by CES 2023 but it remains to be seen if AM4 gets a new X3D option.
Even without the X3D options, the AM4 lineup has plenty of juice with 6, 8, 12, 16 reduced core chips that deliver far more value than anything on the AM5 platform.
The discrepancy between AM4 and AM5 sales can be seen in the stats shared by TechEpiphany:
🔥 Mainboard Retail Week 40 (mf)
AMD: 1970 units sold, 55.65%, ASP: 146.79
Intel: 1570, 44.35%, ASP: 214.56AMD Revenue: 289’171, 46.19%
Intel: 336’860.1, 53.81%Best Sellers: MSI MPG B550 Gaming Plus
(AM5: Gigabyte X670 AORUS ELITE AX)#AMD #Intel # good morning pic.twitter.com/HHVpa8acxL– TechEpiphany (@TechEpiphany) October 9, 2022
🔥 CPU Retail Week 40 (mf)
Total: 5080 (📉-2.3%)
AMD: 3620 (📉-7.65%) units sold, 71.26% (📉-3.76%), ASP: 289.84
Intel: 1460, 28.74%, ASP: 278.45
AMD Revenue: 1’049’207.1, 72.07%
Intel: 406’540.7, 27.93%If you like my work#AMD #Intel # good morning pic.twitter.com/exu8U7GoI2
– TechEpiphany (@TechEpiphany) October 9, 2022
Right now, almost all major retailers have a lot of AMD Ryzen 7000 CPUs and many AM5 boards in stock, so unless there’s a huge demand for them, there’s no need to continue production at full capacity. With the market improving in 2023 and demand starting to rise again, AMD may resume production to normal but by then regular chips will have to share some of that capacity with other Zen 4 lines like X3D and Mobility parts. Not to mention the Zen 4 EPYC CPUs.
