AMD Ryzen 7000 sales are slower than expected: But why?

We’ve heard from multiple sources that Zen 4 processor sales are weaker than expected, even taking into account current market conditions. The new Ryzen 7000 processors have some strengths, including performance, but the barriers to sales are substantial.

First of all, it should be noted that AMD processors still continue to be quite popular. AMD already has up to 70 percent of desktop CPU sales – depending on the source consulted. However, most of this success is due to AMD’s older AM4-based processor, even after the launch of the Ryzen 7000 with Zen 4 architecture.

According to data from TechEpiphany, which catalogs the sales volumes of AMD parts, things seem to be strong for AMD, but that’s not the case for the AM5. During the launch week, 78 percent of AMD’s sales were based on AM4-based parts, while this figure has increased to 94 percent in the following weeks. While these numbers for the AM5 are better than what Intel achieved at its Alder Lake launch last year, it’s clear that sales are weaker compared to previous Zen processors and platforms. In fact, a retailer states that it will take weeks for them to reach the number of Zen 3 processors they sell in a few hours with Zen 4.

Ryzen 9 7950X became the best-selling processor

According to the statements, the Ryzen 9 7950X was the best seller among the four processors released, followed by the Ryzen 7 7700X. This reveals that users are giving priority to high-end systems for now. In fact, when the new processor generation came out, we would see sales coming mainly from mainstream or entry-level models. However, this is contradictory for the Ryzen 7000 and AM5 platform.

Another reliable indicator for CPU sales is Amazon’s bestseller list. As of now, we see the dominance of AMD processors in the top 10. However, currently the best-selling next-generation Zen 4 processor, Ryzen 9 7950X, is in 13th place on the list, while Ryzen 7 7700X is in 21st place. There are no other Zen 4-based processors in the top 30.

Why are Ryzen 7000 sales worse than expected?

In fact, the global economic situation is at the top of the list among the reasons for the weak sales of the Ryzen 7000 processors and the new AM5 platform. We are in a period where the demand for PC hardware has dropped significantly. In addition, Ryzen 7000 processors are slightly more expensive than their predecessors.

On the other hand, another important factor is the very powerful AM4 platform. With its long-lasting and powerful structure, AM4 remains up-to-date. On the other hand, users who already have the AM4 system do not want to radically change their existing systems. In addition, although the Ryzen 7000 series is a strong step forward compared to the Ryzen 5000 family, it seems difficult to generate sufficient demand in these conditions in terms of cost-benefit.

Another reason for the poor interest of users is the high prices of AM5 motherboards. As you know, Ryzen 7000 processors come with the new AM5 socket and demand a new motherboard. Motherboards with both the X670 and B650 chipset have entered the market more expensive than expected. Few AM5 motherboards currently on the market are under $300. On the other hand, almost all of Amazon’s bestseller list consists of $200 and under motherboards.

In simple math, the new cheapest AM5 CPU + motherboard combo (excluding DDR5 memory) costs around $550. Someone who already has the AM4 platform can upgrade to the 5800X3D for just $400-420. In the coming months, this situation may improve with the spread of the B650 series.

The upcoming Intel 13th generation Core processors are also affecting sales. Because Intel 13th generation Core processors do not come with a new socket, they have more affordable options on the motherboard side. The 29 new Intel Z790 motherboards listed average around $320, with many cards under $250. Moreover, DDR4 support is also offered.

At the end of the day, AMD shouldn’t be too worried.

Ultimately, we can conclude that AMD is aiming for the high end first with Zen 4 and Ryzen 7000. Presumably, AMD’s goal was to go to the top and take the current cream of the market. Already, the Ryzen 5000 family is still very strong. So AMD doesn’t have to worry too much.

But it’s clear that AMD needs to improve on motherboard pricing if it’s going to make Zen 4 a success. A very narrow segment pays $300+ for a motherboard. As a result, sales will never be as strong as during the pandemic, but pricing adjustments could increase demand.