Ryzen 3 Desktop series has gone relatively stale with barely any updates. This is a problem as for budget PC builders, they want to build desktop towers but there aren't many options anymore. The drop in low-end desktop CPU market share is a big issue as laptop CPU has taken over the low price point market share. This leaves limited options when looking at cheap desktop hardware, that barely gets updates yearly.
Budget builders face limited options as AMD shifts focus to high-end gaming
Travis Kirsch AMD Product manager mentioned that they are mainly focusing their efforts into high end gaming. As of now they only have three SKUs of Ryzen 3 on AM4 (older architecture) and 1 SKU for AM5 (new architecture). The lack of SKUs for Ryzen 3 comes from the strategy of focusing more on the tiers of performance rather than going after the low end market.
What AMD does is take the mobile CPUs and uses them in desktop versions of Ryzen 3. Which helps them in many ways as they can use the same architecture for different products and can integrate graphics as well for cheaper. It's a sensible engineering choice that helps them keep the price low for the low-end without designing any desktop silicon for it.
Travis mentioned that low end CPU's had high market share in the past, but now that has changed with laptops taking over. He clearly mentions that market size for Ryzen 3 is not large, low end desktop has been replaced largely. (AMD AM5 Dominates German Motherboard Market was covered in AMD earlier, where we can see what the current volume is from AMD)
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