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Based on an internal AMD report, we managed to find out that the company plans to lower its Ryzen 7000 “Zen 4” CPU production plan.
PC Market Decline & Poor Reception of AM5 Platform? AMD Plans to Downgrade Ryzen 7000 “Zen 4” CPU Production Plan
The report, which cites AMD’s internal management, suggests that the red team plans to lower its production of the Ryzen 7000 “Zen 4” CPUs amid a decline in the PC market and the general poor reception of the AM5 platform. While the AM5 platform is still fresh, AMD anticipated that it would succeed in attracting the interests of users with a strong set of features such as support for DDR5 and PCIe 5.0 technologies, however this in return raised the prices of the motherboards and even the entry. level B650 series, which was recently introduced, did not reach the $ 125 US that AMD promised.
The report also states that enthusiasts are what’s keeping the AM5 afloat at the moment and the Ryzen 9 7900X has become the best/best seller with its sales reportedly the highest among the entire Zen 4 lineup. The $549 US chip looks to be much more attractive than the Ryzen 7 7700X ($399) and the Ryzen 5 7600X ($299). This statistic is not based on dealer-specific sales but instead on global shipping and retail numbers.
The reason for this is that most entry-level buyers can simply go in and upgrade to the Ryzen 7 5800X3D on the existing AM4 platform if they want better gaming. For them, the 8 Zen 3 cores still offer decent multi-threaded performance while the 3D V-Cache boosts gaming performance beyond the 12900K. Now, there has been an increase in talks about a possible X3D launch simultaneously on the AM4 and AM5 platforms. AMD is already gearing up for the launch of Ryzen 7000 3D V-Cache, which should be announced by CES 2023, but whether AM4 gets a new X3D option remains to be seen.
Even without X3D options, the AM4 lineup has plenty of juice with affordable 6, 8, 12, 16 core chips that offer far more value than anything on the AM5 platform.
The disparity between AM4 and AM5 sales can be seen in statistics shared by TechEpiphany:
🔥 Leaderboard Retail Sales Week 40 (mf)
AMD: 1970 units sold, 55.65%, ASP: 146.79
Intel: 1570, 44.35%, ASP: 214.56Revenue from AMD: 289’171, 46.19%
Intel: 336’860.1, 53.81%Bestseller: MSI MPG B550 Gaming Plus
(AM5: Gigabyte X670 AORUS ELITE AX)#AMD #Intel #AMDRyzen pic.twitter.com/HHVpa8acxL– TechEpiphany (@TechEpiphany) 9 October 2022
🔥 CPU Sales 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%RT if you like my work.🍻#AMD #Intel #AMDRyzen pic.twitter.com/exu8U7GoI2
– TechEpiphany (@TechEpiphany) 9 October 2022
Currently, almost all major retailers have many AMD Ryzen 7000 CPUs and several AM5 boards in stock, so unless there is a huge demand for them, there is no need to continue production at full capacity. As the market improves in 2023 and demand resumes, AMD may simply resume production to normal, however before that time, the normal chips will have to share some of that capacity with other Zen 4 lines like X3D and moving parts. Not to mention the Zen 4 EPYC CPUs.
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