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Two new quad-core Xeon models and price cuts in Q3'07

Before AMD is able to launch its quad-core processors, Intel will aggressively cut prices of quad-core desktop processors. Intel and AMD’s price wars are not just affecting desktop products, however. The price wars continue with server and workstation products as well. Intel’s latest roadmap reveals two new Xeon processors and aggressive quad-core price cuts in Q3’07.

The Intel Xeon X5300-series receives a speed bump to 3.0 GHz in the form of the new quad-core Xeon DP X5365. It will operate on a 1333 MHz front-side-bus with 8MB of L2 cache like the other products in the quad-core Xeon DP lineup. The new quad-core Xeon DP X5365 will launch at the price of $1,172 per processor in 1,000 unit quantities.

Intel expects to cut prices of existing quad-core Xeon DP processors in July 2007 as well. The previous flagship quad-core Xeon DP X5355 drops down to $744 from its current $1172 price in July. The other two 1333 MHz front-side-bus endowed Xeon DP E5355 and E5335 will cost $455 and $316 per processor, in 1,000 unit quantities after the July 2007 price cuts. Intel’s two quad-core Xeon DP processors with 1066 MHz front-side buses, models E5320 and E5310, will drop to $256 and $209, respectively.

Intel Quad Core Xeon DP
L2 Cache
FSB Q3'07
X5365 3.00 GHz 8MB 1333 MHz
X5355 2.66 GHz 8MB 1333 MHz
E5345 2.33 GHz 8MB 1333 MHz
2.00 GHz 8MB 1333 MHz
E5320 1.86 GHz 8MB 1066 MHz
1.60 GHz 8MB 1066 MHz
L5320 1.86 GHz 8MB 1066 MHz
1.60 GHz 8MB 1066 MHz

Recently launched low-power Xeon DP L5320 and L5310 processors will receive similar price cuts as well. The 50-watt TDP quad-core Xeon processors will cost $320 and $273 for models Xeon DP L5320 and L5310, per processor, in 1,000 unit quantities, respectively. Intel’s low-voltage quad-core Xeon DP 5148 will not receive any price cuts in July 2007 and will continue to cost $519, per processor, in 1,000 unit quantities.

Intel Quad Core Xeon UP
L2 Cache
FSB Q3'07
X3230 2.66 GHz 8MB 1066 MHz
X3220 2.40 GHz 8MB 1066 MHz
2.13 GHz 8MB 1066 MHz

Intel will add a new quad-core Xeon UP processor in Q3’07 as well. Quad-core Xeon UP X3230 processors will have a 2.66 GHz clock speed on a 1066 MHz front-side-bus, like the upcoming Core 2 Quad Q6700. Pricing will also be identical to the Core 2 Quad variant at $530 per processor, in 1,000 unit quantities.

The rest of the quad-core Xeon UP processor will receive price cuts similar to Intel’s Core 2 Quad. Xeon UP X3220 and X3210 processors will drop to $266 and $224 per processor, in 1,000 unit quantities, come Q3’07.

Intel Dual Core Xeon UP
L2 Cache
FSB Q3'07
3085 3.00 GHz 4MB 1333 MHz
2.66 GHz 4MB 1333 MHz
2.33 GHz 4MB 1333 MHz

Dual-core Xeon UP 3070, 3060, 3050 and 3040 will not receive price cuts; however, the dual-core Xeon UP lineup will have refreshed models.  As with the Core 2 Duo E6x50 product lineup, the dual-core Xeon UP lineup will receive similar 1333 MHz front-side-bus treatments. Intel is set to launch dual-core Xeon UP models 3085, 3075 and 3065 respectively clocked at 3.0 GHz, 2.66 GHz and 2.33 GHz. These new models will launch at $266, $183 and $163 per processor, in 1,000 unit quantities.

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AMD in trouble?
By aurareturn on 3/16/2007 2:17:39 AM , Rating: 3
Wow, Intel is really playing aggressive this time and it's not taking any chances.

Now it makes me think just how fast the K8L really is. Can't wait to see.

RE: AMD in trouble?
By spartan014 on 3/16/2007 2:27:54 AM , Rating: 2
Looks like it.. I'm really worried for AMD. Even if Barcelona turns out to be the top performance CPU, what are they gonna do about the pricing ?

RE: AMD in trouble?
By jpeyton on 3/16/2007 2:44:33 AM , Rating: 5
I wonder how Intel's shareholders will react to the aggressive price-cutting in the typically high-margin server CPU market. With price cuts this deep, how can they not expect profit to take a steep year-to-year decline (even with increased sales).

For example, AMD has nothing that can touch a 3GHz Core 2 Duo (not even their top-of-the-line X2 6000+). But Intel is planning on cutting the price from the current $1000 mark to ~$250, about half what the X2 6000+ goes for.

Low-margin budget CPUs are not where Intel or AMD makes their biggest profit.

RE: AMD in trouble?
By TSS on 3/16/2007 3:11:16 AM , Rating: 2
your not seeing the big picture, these price cuts are to make people buy a intel now so they wont buy a amd for another year or 2 atleast and then intel will be ontop again. besides is 2 stages, there are cuts now (or april) and the second price drops come when AMD releases the new CPU, to make people still buy intel.

AMD cut prices too when core 2 duo came out, though not as much since they didn't have the capability to make so many CPU's. where at the end of a processor's life cycle again, this time of the AMD64.

it's all about getting as much market share as possible now, while the next cut will be about holding it.

RE: AMD in trouble?
By caqde on 3/16/2007 4:12:58 AM , Rating: 2
Well the big picture will come after AMD releases the K8L. I'm waiting until then to see where my upgrade goes. Not that I will be able to upgrade until then anyways. Either way I hope AMD's chip is as good as I think it is going to be based on the changes to the Architecture it should be pretty impressive. Penryn doesn't seem to be much of an upgrade unless I missed something or Intel is holding back some information although I don't know why they would at this point... ah well wait it is...

RE: AMD in trouble?
By tuteja1986 on 3/16/2007 6:52:37 AM , Rating: 2
To me it seems Intel wants to completly overwhelm AMD at all cost to make sure they get to a point where no recovery is possible. In late 2008 they hope AMD is no more. Then when they release new CPU line up in late 2008 they can charge what ever they want and don't have to worry about competition. In the short term AMD next Quarter report will be in the negative and they will have to make sure that shareholder don't start revolting in a big way.

Or AMD is about to release a monster that scares the living crap out of Intel.

RE: AMD in trouble?
By paydirt on 3/16/2007 8:20:17 AM , Rating: 2
Possibly, but I don't think that Intel is "selling the farm" so to speak to drive AMD out of business. At the most recent earnings report, Intel's gross margin was 50% and AMD's gross margin was 40%. It will be interesting to see what happens with sales and margins in April. Another factor is large corporations like Sun Microsystems going from AMD-only to a mix of AMD and Intel.

RE: AMD in trouble?
By othercents on 3/16/2007 9:31:05 AM , Rating: 3
I doubt if the government would allow AMD to go under since Intel would then have a monopoly for processors. Intel really needs AMD for competition otherwise they would become stagnant.

What I'm wondering is if Intel is cutting too much and might oversell themselves into a large amount of debt. Playing this type of game is like a double edged sword. Cut too deep you might bleed to death.


RE: AMD in trouble?
By Janooo on 3/16/2007 11:16:09 AM , Rating: 2
It just could be that Intel has very good yields and it translates to oversupply. When the supply is higher than demand the price goes down.

RE: AMD in trouble?
By Targon on 3/16/2007 1:28:56 PM , Rating: 2
Or Intel has a good idea about how good the performance of K8L/K10 is and knows they will need to really cut prices to compete. All this talk about price cuts for Q3 2007 is mostly speculation based on the current situation in the marketplace. We will also need to see how the QuadFX platform performs with the new quad-core processors from AMD.

RE: AMD in trouble?
By zsdersw on 3/16/2007 5:12:29 PM , Rating: 1
Seeing things with your AMD-shaded glasses as you do, I can easily understand why you'd choose to take that perspective.

Your postulation is not the simplest explanation, so chances are it's not really what's going on.

RE: AMD in trouble?
By visaris on 3/25/2007 2:34:31 PM , Rating: 2
When Conroe was about to be launched, AMD scheduled a round of huge price cuts as well. It is normal to see substantial cuts from one company upon the release of the other company's major new product(s).

You need to realize that chip design takes years, and these companies don't really make reactionary product releases, especially in the short term. Sometimes a clock bump is possible, but, for the most part, price is the tool used by AMD and Intel compete in the near term.

I would be immediately weary of anyone who is not willing to accept that AMD's first major core revision in years is not an influence on Intel's summer price cuts.

RE: AMD in trouble?
By JamRockaz on 3/17/2007 1:41:52 AM , Rating: 2
Simple economics you say?

Well it goes along with Intel saying they where going to flood the market

RE: AMD in trouble?
By coldpower27 on 3/16/2007 7:38:01 AM , Rating: 2
These price cuts aren't coming into effect until Q3 2007 where I hope AMD will have K8L/K10 Dual Core variants to compete against the Core 2 Duo.

So AMD should be in a better position then, then they are now at least, I hope so for AMD's sake. :D

RE: AMD in trouble?
By rippleyaliens on 3/16/2007 8:29:30 AM , Rating: 2
We have to also remember. That with every Xeon sold, there is a Intel chipset sold with it. so that is money too..
Intel seems to have their production ramped up, so the profit margin is still there. Dont for once believe that intel would sell for a loss. They still make nice margins.
Amd still dominates the 4cpu and higher market. But todays market is Radically different then it was 1 year ago.

1 year ago, sure, you could get a dual proc server. Yahh,, Same money today buys a 2 proc, 8 core server, which totally destroys the dual proc server of just 1 year ago.
80+ % of servers sold are only 2 proc servers. the quads and 8 ways, typically make up 1-2 % of a datacenter. IE High end Exchange, SQL, unix/linux specialty servers, etc...
Not the typical file print, citrix, low end exch, the strategy has changed.

So we get mega servers, at decent prices, it is within 2 years, that ALL companies will be forced to do hardware re-fresh's. and that is what intel is banking on. Keep the price competitive enough, to just stick with 1 vendor for your cpu's. and that is a very smart strategy.

RE: AMD in trouble?
By Phynaz on 3/16/2007 9:10:19 AM , Rating: 2
I thought the desktop versions of K10 weren't coming until 2008?

RE: AMD in trouble?
By KernD on 3/16/2007 10:47:56 AM , Rating: 2
No they will come a few months after the server chip, which will come in Q3.

RE: AMD in trouble?
By LoveTheCoast on 3/16/2007 12:29:49 PM , Rating: 2
It also means some of us can purchase more computing power at a significant savings.

Our company is planning a large server purchase -- with these kinds of cuts, we are planning to hold off a few weeks until these price cuts are in place -- we're already planning to purchase extra servers simply because of these cuts.

RE: AMD in trouble?
By Some1ne on 3/16/2007 2:37:14 PM , Rating: 2
For example, AMD has nothing that can touch a 3GHz Core 2 Duo (not even their top-of-the-line X2 6000+). But Intel is planning on cutting the price from the current $1000 mark to ~$250, about half what the X2 6000+ goes for.

But you have to remember, the planned price-cuts aren't going to take effect until Q3 of this year. By that time AMD should have rolled out its K8L/Barcelona chips, and probably Intel will have responded with something (probably an expanded quad-core desktop lineup) which will likely take over the ~$1000 top of the line price-point.

Anyways, my point was that you are judging future price-cuts based upon the current playing field, which is probably a bit of an erroneous thing to do. When Intel decided to make these cuts, they probably based them off of a projected future playing field, as opposed to the current one. What the implies is that we can probably expect Intel (or AMD, or both) to roll out some impressive new products between now and Q3 to take over the top of the line pricing points from the current Core 2 offerings.

RE: AMD in trouble?
By Crank the Planet on 3/16/07, Rating: -1
RE: AMD in trouble?
By AnotherGuy on 3/16/2007 5:08:05 PM , Rating: 2

AMD is like Spartans he goes.... what r u 12?

U just made my day.

RE: AMD in trouble?
By kilkennycat on 3/16/2007 12:20:04 PM , Rating: 5
Intel is playing true hard-ball again like the Intel of old. Kick the man while he is down. They obviously have excellent 65nm process yields -- and a lot of confidence in the next moves to 45nm. Their aggressive pricing on all processor variants means that AMD cannot quickly recover development costs by charging "early-adopter" prices on any of their next-gen CPUs. AMD is already in a financial bind... due to their stupid and overpriced acquisition of ATi... so the aggressive all-around price cuts are going to have the second-effect of investor wariness in holding AMD stock. Their debt burden jumped about $2billion last year from the ATi acquisition. Bankers don't like lending money to public companies with weak stock prices and very heavy competition ( both from Intel and nVidia...) so where is AMD going to get money for next-gen designs, expanded fabs and the huge investment required in turning out the next-gen high-end graphics engines (from AMD/ATi )? My guess is that due to lack of investment funds and the obvious AMD priority on CPU development, the graphics arm of AMD (ATi) is going to have to cede all high-end/discrete graphics development to nVidia and just concentrate on serving AMD's integrated graphics needs, plus the mobile market. Expect some of the top ATi graphics designers to be looking for interesting jobs in the near future. I'm sure nVidia or Intel might be happy to accommodate them.

RE: AMD in trouble?
By Puddleglum1 on 3/16/2007 2:13:35 PM , Rating: 2
Best post I've ever read on this topic.

RE: AMD in trouble?
By kilkennycat on 3/16/2007 4:07:44 PM , Rating: 2
Thanks for the compliment. I have no axe to grind with AMD, only sadness at their management's recent obvious stupidity (My current most-excellent desktop PC is 4400+ based...). The ATi deal was finally consummated a couple of months after the release of Core2 and the obvious signs that this was dangerously-serious competition for the AMD64/X2 family. Up to that time, AMD still had the option of completely backing out of the ATi deal, but they blindly went ahead compounding the error by paying 20% premium over market for all the outstanding ATi shares. Since then, the AMD stock price has halved with little prospect of any upward momentum - the fact that ATi has continued with their pattern of late deliveries, specifically with their release of Dx10 GPUs has not helped AMD's bottom line. nVidia and their partners have already shipped ~ 500,000 8800-family graphics-cards; an excellent shipment number for the priciest (and most profitable) currently-available graphics cards. 500,000 fewer sales for AMD/ATi and their card-partners.

By Visual on 3/17/2007 9:46:41 AM , Rating: 2
i never imagined quad-core dual-socket systems will get this cheap so soon.
doesn't this practically put any MP xeons out of use? are there any MP xeons made still at all? this article doesn't mention them...

does anyone have experience with overclocking server chips like these? can you recommend a mobo for dual DPs that can be overclocked? yes i know big companies wouldn't use overclocked chips, but for a small firm it might be an option...

imagine these 8 cores in a gaming pc... yes, useless for now, but so ubercool... how come alienwere hasn't launched something like this? with 4 full 16x pci-express gfx cards too, 8 1tb hdds in raid5 for storage and a pair of ssd drives in raid0 for the os?

RE: ubercool
By dude on 3/19/2007 12:41:08 AM , Rating: 2
Forget it. The chipsets and motherboards will price it out of most of the readers of this web site.

Also, even if someone did come out with a motherboard/chipset combo that supports these chips, it will not overcock very high, at most about 10%. Major OEM's cannot afford to have their clients overclock a chip and have problems with stabality,unfortuantely, as I'm sure these chips will overclock to the high end of the current line, and probably slightly higher.

In this case, it's likely a desktop chip will drop in price enough for you not to pick up the xeon branding CPU.

RE: ubercool
By coldpower27 on 3/19/2007 8:07:35 AM , Rating: 2
Well there will be Xeon UP and Core 2 Quad's but you still won't be able to get a Octo Core system with only a Single Socket. Not on the 65nm node anyway at least... 45nm maybe... but software still needs sometime to catch up on desktop workloads.

By puffpio on 3/16/2007 1:47:21 PM , Rating: 2
Based on the specs in the tables in the article, they look the same except for price

By Anh Huynh on 3/16/2007 2:25:38 PM , Rating: 2
DP is for 2-way systems, LGA771 socket. UP is single processor, LGA775.

This is the reason of the price cut
By nofumble62 on 3/18/2007 4:20:19 AM , Rating: 2
AMD's target of achieving 30% market share.

By oob on 3/19/2007 10:51:56 AM , Rating: 2
After all the above posts, it is as simple as that.

Ruez says AMD needs to 'break the monopoly' and to do this AMD needs 30%.

Intel is doing everything it can to stop the market share loss.

The battle is fought over pricing, for now....

By crystal clear on 3/18/2007 12:56:06 AM , Rating: 1
This explains it all-

Intel has confirmed plans to "tick" and "tock" AMD into submission.

Beer in hand and in belly, we listened to Intel's latest AMD-hammering pitch during a session Wednesday with company executives in San Francisco.

Rather than going biblical, Intel has gone metronomical, vowing to overwhelm AMD with a regular "cadence" of product releases that run on a "tick tock" fashion. The tick tock relationship centers on Intel thumping the market with a new chip architecture – the tock - and then following that with less dramatic, more pragmatic manufacturing process, core, voltage and cache shifts – the tick.

Intel has been banging on about this strategy – that's really more of a tock tick than a tick tock ...

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
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