Update: AMD To Ditch Initial AM2 2x1MB Cache Desktop CPUs
June 14, 2006 1:37 AM
comment(s) - last by
AMD pushing 2x512KB chips instead
Not to the surprise of
, AMD representatives are telling its CPU distributors to play down 2x1MB L2 cache
processor sales in favor of the 2x512KB AM2 parts. Several days ago,
published the entire AMD
July 24th pricing guide
complete with price cuts across the board. The price list was surprisingly devoid of AMD 2x1MB cache CPUs, and today we know the reason why.
Several US distributors all confirmed the same story with
, either claiming either a lack of information about the 2x1MB
parts or claiming AMD employees were told to disregard 2x1MB cache desktop parts for the time being.
While distributors could not tell
exactly the reason for the reduction, the cost of running two separate cores and logistics for those cores is obviously eating at the bottom line for AMD. The additional cache per chip means fewer chips per wafers and the additional SKUs means that more marketing dollars must be spent -- and when battling it out with Intel on the pricing front, every dollar counts.
Furthermore, AMD can dedicate all of its fab resources to work on a unified design rather than splitting development between two separate cache revisions. AMD's Turion X2 lineup does not contain any 2x1MB L2 cache components.
Scott Wasson from
The Tech Report
seems to have also confirmed that the 2x1MB chips are toast.
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call me crazy
6/14/2006 10:23:57 PM
I'm thinking they are saving the 1mb cache chips for servers so they can keep capacity high for Dell's introduction of servers based on the higher performance chips. I'm sure they made promises to Dell about supply.
Secondly the general move to 512 cpu's lets them start concentrating on clockspeed increases, which they probably see as needed to handle Conroe.
Thirdly since they plan to introduce a higher cache chip in 6-12mo it wouldn't do to have 1mb chips performing at nearly the same level. With 512 it will be easier to display a "performance improvement" and thus higher price of the zcache or whatever they decide to call it.
Overall I think they could have used every ounce of performance they could get given what Conroe is bringing, so in sum I think it's a bad move. But, as I suspect, if they absolutely have to cut cost to manage price and expect to compete with Conroe mid and low grade chips on price, then it fits their strategy. I still think it's a bad idea. I think they made their bread and butter on enthusiasts and this will not win them more of those.
RE: call me crazy
6/15/2006 1:26:13 AM
Or maybe their going to off load their 1mb production line to Dell, keep all the 512k inside, let Dell produce FX and Server Cpu's, that'd be a smart move...
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