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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 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

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