1. Production Cost
2. Lack of competition
3. Lot of investment in R&D
CPU making is not a easy job for manufacturers. Chip manufacturing is a complex process. A dual core processor consists 1.75 Billion transistors. A quad core processor consists up to 2.16 Billion transistors. Transistors are the building blocks of integrated circuits, such as computer processors. It converts or switch the electrical signals.
These days CPU Comes with integrated modules and network connectivity chip. CPU’s from Intel and AMD comes with integrated GPU.
2.Lack of Competition
Lack of competition in the market is also a big reason for High pricing of CPU. In Desktop or Laptop market, Only Intel or AMD are player. Intel CPU’s much better than AMD, AMD never compete the Intel in past years. That’s why Intel Offers expensive CPU to the consumers.
3.Lot of Investment and Marketing
We know that, even a single facility or features has been introduced by companies, it takes a lot of hard work and money by companies.
CPU design are complex and not easy to manufacturing. Sometime A lot of time and big amount of money has been invested by company. Also lot of money invested in the marketing of product. Marketing of product also affect the price of product. That is another reason of Expensive CPU.