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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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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.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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