Intel plans to sell 4 million ARC GPUs at an average price of $75, slower than Ryzen 6000 RDNA 2 iGPUs

Intel plans to ship at least 4 million ARC Alchemist graphics cards in 2022. But you already knew that, right? Here is something that raises eyebrows. For those 4 million GPUs, Intel only expects to earn $300 million in revenue, with the rest going to intra-company royalties. In a nutshell, the average selling price (ASP) of 1st generation ARC graphics cards will be a modest $75. That’s half the GeForce GTX 1650’s MSRP and a third of its current market price.

In reality, Intel expects to ship 4 million GPU units, but will only get $300 million in revenue from that, with the rest being intra-company royalties that are just made up?

That’s an average sale price of around $75.

Is Intel just selling low-end GPUs to gain market share?

They have 2 dies that they will be selling, and the smaller of the two is only 128 executions. For reference, the last generation Tiger Lake integrated GPU was 96 execution units, and the next generation Meteor Lake goes up to 192 execution units. The vast majority of Intel’s GPU volume will sell in the market at around $75 or less ASP and will perform below AMD’s integrated graphics and also below AMD’s next-gen iGPU performance. ‘Intel.


This makes us wonder if the bulk of Intel’s discrete graphics will come in the form of the 128 European units intended for integrated graphics solutions. AMD’s new Ryzen 9 6900HS with RDNA 2 iGPU should have no trouble destroying these “dGPUs”.

It’s also highly likely that Intel will offer OEMs large-scale discounts to pair its Alder Lake-P processors with Arc Alchemist mobile GPUs to increase range. There are rumors of an after-sales payment model in which sellers will only pay for GPUs after the laptops are sold. All in all, Intel looks set to fight for a slice of the discrete graphics card market, and given the state of the market, that’s only fair.

About Raymond A. Bentley

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