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

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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.

"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer

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