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Procurement Market Intelligence Report

Central Processing Units
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Central Processing Units?

What is the average price of Central Processing Units?

This procurement report includes pricing information to help you purchase Central Processing Units. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Central Processing Units been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Central Processing Units yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Central Processing Units?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Central Processing Units with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration among suppliers of CPUs is high; major players Intel and AMD make up about 80.0% of the market. Over the past three years, market share concentration has been increasing, mainly because Intel has captured a rising level of market share from its competitors through partnerships with electronics... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Competition

How long have you provided products to your longest-tenured client?

What is your reputation like among competitors and customers? How have you developed it?

What features set your products apart from your competitors'?

Do you offer any value-added products or services that your competitors do not?

Supply Chain Risk

How do you manage risk in your supply chain?

Who are your most important suppliers? How long have you been in business with them?

How many suppliers do you source from?

Where are your input suppliers located?

How does your company stay profitable during economic downturns?

Vendor Financial Risk

Has your company ever been at risk of bankruptcy?

How much of your revenue comes from your five largest customers? What impact on your profitability would there be if you lost a big customer?

Have you had to increase your marketing expenditures to contend with increasing competition? What has that done to your profitability?

How does your company stay profitable during economic downturns?

How have rising input costs affected your profitability?

Related Goods

Do you offer any complementary products or services with the purchase of CPUs? If so, what are they?

What additional products or services do you offer separate from the purchase of this equipment?

What type of discounts do you offer for specific types or brands?

Are there any incentives for repeat customers?

What promotional deals exist for bulk buyers?

Quality Control

What is the typical inspection process that your product undergoes?

What performance-monitoring systems are in place at your company?

Do you have quality control benchmarks that you report to clients? How do you measure quality?

How often do you experience defects with your products?

To what degree are in-process inspections and process controls carried out?

Downstream Demand

How do you stay competitive in the market?

How do your R&D expenses compare to those of your competitors?

How do you perceive the growth of SoCs? Do you have a plan to address the growing concern of this substitute to your market?

How do you market to and secure new clients?

How has the growth of new downstream consumer electronics affected your business model?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should specify the total budget for the project.

Buyers should include details about per-unit spending expectations and limitations.

Buyers should request detailed information about shipping and handling costs.

Selection Criteria

Buyers should look for providers capable of providing CPUs that meet the specifications outlined in the RFP.

Buyers should give priority to suppliers that can meet the budget requirements in the RFP.

Buyers should try to choose vendors that are located nearby to reduce shipping costs and times.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and when the award will be announced.

Buyers should indicate the date by which the CPUs must arrive on-site.

Buyers should indicate how they want the CPUs to be packaged and shipped.

Evaluate major factors to mitigate risk

How risky is the supply chain?

CPU vendors face a moderate level of risk from their supply chains. Suppliers rely on inputs from a variety of upstream vendors, such as silicon manufacturers, semiconductor and circuit manufacturers, as well as iron and steel manufacturers and electrical equipment manufacturers. Buyers should consider the supply chain risks and vendor... Subscribe to learn more.

HIGH

MEDIUM

LOW