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Intel set to cut prices ahead of AMD's "Barcelona" launch

Last week, AMD talked about its desktop plans for the upcoming year in Sunnyvale, California. Although AMD showed its upcoming desktop processor running in single and dual-socket configurations, the company chose not to announce an official launch date for its next-generation desktop processors. According to Robert Rivet, AMD executive vice president and CFO, however, AMD's next-generation processors will be ready by Christmas.

Despite how distant the possible December launch date of AMD's native quad-core desktop processors may seem, Intel is already stepping up the competition and will be instituting a series of aggressive price cuts in July. We originally reported these major price cuts, which will be targeting Intel's quad-core desktop and server processors, in March. At the time, we didn't know the official date of when the price cuts would take place. We can confirm today that the price cuts will take place on July 22.

Intel Core 2 Quad
Model
Core
Frequency
L2 Cache
FSB July 22
Pricing
QX6800 2.93 GHz 8MB 1066 MHz
$999
Q6700 2.66 GHz 8MB 1066 MHz
$530
Q6600 2.40 GHz 8MB 1066 MHz
$266

The first part of the price cuts will center on Intel's quad-core desktop processors. The Q6600, which Intel launched in February, currently sells for $530 in quantities of 1000. When the product was originally launched, it was priced at $851 in quantities of 1000. The next round of price cuts will effectively lower the price to $266. The selling price of the Intel QX6700 will also be lowered, coming in at $530 by the end of July.

Intel Quad Core Xeon DP
Model
Core
Frequency
L2 Cache
FSBJuly 22
Pricing
X53653.00 GHz 8MB 1333 MHz
$1172
X5355 2.66 GHz8MB 1333 MHz
$744
E5345 2.33 GHz 8MB 1333 MHz
$455
E5335
2.00 GHz 8MB1333 MHz
$316
E53201.86 GHz 8MB 1066 MHz
$256
E5310
1.60 GHz 8MB1066 MHz
$209
L53201.86 GHz 8MB 1066 MHz
$320
L5310
1.60 GHz 8MB1066 MHz
$273

Intel is also slashing the prices of its quad core Xeon DP processors. The flagship Xeon DP X5355 will see its introductory $1172 price drop to a more manageable $744. Likewise, Intel's slowest 1333MHz FSB Xeon DP processor will drop to $316 while the Intel's two low-voltage Xeon DP L5320 and L5310 processors will fall to $320 and $273 respectively.


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RE: Intel is out for blood
By TomZ on 5/15/2007 7:50:50 PM , Rating: 0
Talk out of your ass much? Since nobody has seen any "real" Barcelona benchmarks (near-final silicon doesn't even exist), I don't see where else you could have drawn these conclusions.

If you're going to cheerlead for AMD, just say "Go, AMD, Go!" instead of making up performance conclusions.


RE: Intel is out for blood
By Mitch101 on 5/15/07, Rating: 0
RE: Intel is out for blood
By TomZ on 5/15/2007 8:10:36 PM , Rating: 1
I didn't say Barcelona will be a dud - I'm not making any performance claims because I haven't seen any real numbers. But to answer your question, Intel clearly wants to marginalize AMD, which is the reason for their obviously very agressive strategies.


RE: Intel is out for blood
By Polynikes on 5/15/2007 9:59:39 PM , Rating: 3
quote:
Intel doesnt need to cut prices if they know the AMD chips arent faster.


Yet they had price cuts not that long after they released Core 2 Duos, despite the fact that nothing on the AM2 platform could keep up with them. Like someone said earlier, Intel IS out for blood and wants to stay a step or two ahead if they can. It's just good business. It's not like the price cuts are hurting them.


RE: Intel is out for blood
By Conroe on 5/15/2007 10:44:51 PM , Rating: 2
quote:
Intel doesnt need to cut prices if they know the AMD chips arent faster. So why do it?

To sell more chips! It's not all about beating AMD, it's all about selling and making a profit. Just think about it, how many would buy a Q6600 if it was $800 and how many would if it's $266? The fact is they can keep their FABs more busy and sell more CPUs and make more money with these low prices! AMD could do it too, if only they could.


RE: Intel is out for blood
By Mitch101 on 5/16/2007 9:36:38 AM , Rating: 1
Yes this is a tactic to undermine AMD and sell more cpu's and take more market share from AMD in the pre-release of Barcelona. Barcelona is a beast you will see the benchmarks soon enough. As for why you dont its simply because AMD needs to liquidate thier inventory. Heck they still have 939 and 754 chips to liquidate but those inventories are just about low enough for AMD to make some formal announcements about Barcelona.

What everyone here is overlooking is that Intel can actually sell CPU's at the cost of manufacturing so the prices can go even lower. WHY? Because most Intel CPU's are actually sold with Intel Motherboards. Not everyone buys an NVIDIA motherboard especially on the server side of things. So if Intel doesnt make the money on the CPU's it makes it in Motherboard sales. Note the top end Intel chips which will be ordered by companies arent coming down in price. Thats because general consumer dont buy these but companies do and as I said companies dont flinch at spending an extra grand or two on a server. This is one reason why AMD had to buy ATI. Something majorly overlooked in the profit potential is motherboard sales.

Oh Golly I can buy an Intel quad core for $266.00 well then chances are you want a good motherboard to go with that and an Intel motherboard is where Intel will makes its money. Its certainly a great deal but expect to pay a premium if you want a good motherboard to go with it. The 965 chipset if one of Intels best chipsets and since most people will never consider SLI then its certainly a good buy because the 965 is probably better than NVIDIA's single PCI-E slot motherboards. Pairing up a quad core cpu with a $50.00 motherboard is like putting a V8 into a yugo and wanting corevette performance. In a straight line it might do great but try taking corners.

On the server side Intel charges the premium for the CPU and the motherboard.

Everyone is basing it just on the CPU cost? Most of the time you require the coresponding motherboard to work with that new CPU. Im sure those DDR3 motherboard will be real cheap LOL but you know that most consumers are too stupid to know that their is no benefit to a DDR3 motherboard over a low latency DDR2 motherboard so Intel can make a premium on Marchitecture. Companies and most people generally dont just upgrade the CPU they buy a whole new system to replace a previous one. Scratch build machines are not the main stream of sales.

On the CPU front yes this hurts AMD maybe AMD can only make $10.00 a cpu now for the mainstram but with AMD aquiring ATI then AMD can possibly make a few more on Motherboard sales which is something they couldnt do before.

You have to look at the final cost of CPU AND MOTHERBOARD. If the Intel CPU is $266 and the coresponding motherboard is $219.00 then its $485.00. If AMD's Barcelona is $350.00 and the motherboard is $120.00 then the AMD combo is cheaper at a total of $470.00. And we are all noticing that NewEgg and several other companies are selling combo deals right? AMD can make money on Motherboards dont forget that. Its not just graphics chips and cpu's.

I will ask one question see if you can answer this it will seem irrelevant but see if you know the answer.

What does a boeing 747 weigh?


RE: Intel is out for blood
By rcc on 5/16/2007 1:05:22 PM , Rating: 2
quote:
What does a boeing 747 weigh?


That's a general question asking for a specific answer. It's non-sensical. What model 747, what options, loaded or empty, fueled for what range, what engine configuration, etc.


RE: Intel is out for blood
By Mitch101 on 5/16/2007 1:36:49 PM , Rating: 2
Excellent answer rcc and exactly what I was looking for.

How many passengers are on the plane, Food loaded, etc. Its the idea that everyones focus is simply on the CPU price and not any of the surrounding items which also make up the price machine price. Like buying a Quad and not taking into consideration the motherboard, ram, power requirements, cooling, etc.

A good example is E-Bay with one item costing $15.00 and the next costing a $1.00 but has rediculous shipping. The $15.00 could be a better buy in the end but someone gets duped by it only costing a dollar.

The incorrect answer would have been the weight as listed by wikipedia or other source without looking into all the possibilities. I expected at least one person to just give the base weight of the plane.


RE: Intel is out for blood
By Mitch101 on 5/17/2007 12:35:46 PM , Rating: 2
Here comes more Barcelona info. But maybe Im still talking out my behind.

AMD Barcelona can potentially smash Intel
http://blogs.zdnet.com/Ou/?p=492

AMD Performance Library 1.1 Preview
http://developer.amd.com/apl_preview.jsp


RE: Intel is out for blood
By cochy on 5/16/2007 12:38:31 AM , Rating: 2
quote:
Intel doesnt need to cut prices if they know the AMD chips arent faster. So why do it?


A Xeon sold is money in Intel's pocket plus an Opteron not sold for AMD. A company buying or upgrading a server come Q3 won't be thinking to re-upgrade come Q4 and Barcelona. Even if Barcelona has a performance lead.

AMD would be extremely wise to come forward with some real benchmarks and real world numbers soon in light of these Q3 Intel price cuts. If they don't it can basically almost be assumed Barcelona will fall short of taking the lead in 1-2 socket systems.


RE: Intel is out for blood
By Proteusza on 5/16/2007 4:25:45 AM , Rating: 2
Yeah, if they released benchmarks for barcelona they might convince the corporate bigwigs to hold off upgrading that server until Barcelona is available. I know AMD is keen to keep information under wraps so that Intel cant react, but if they said the cheapest Barcelona server proc will be say $300, and it offered 25% more CPU power than a Xeon while using the same amount of power, then the IT directors etc would sit up and take notice. thats their market, thats where the big money is - in servers.


RE: Intel is out for blood
By vignyan on 5/16/07, Rating: 0
RE: Intel is out for blood
By mino on 5/16/2007 2:45:47 AM , Rating: 2
Intel, customer oriented ?

What are you smoking ?
I want that!!

PS: As guy above said, Intel is there for blood, period.


RE: Intel is out for blood
By TomZ on 5/16/07, Rating: 0
RE: Intel is out for blood
By GoatMonkey on 5/16/2007 8:17:34 AM , Rating: 2
I think this is more of a "kick 'em while they're down" kind of thing, and a drive to get back the market share they've lost over the last few years.


RE: Intel is out for blood
By skaaman on 5/17/2007 11:20:18 AM , Rating: 2
Isn't that what business is all about? Intel is the 800 pound gorilla. Not to long ago the gorilla was napping and AMD was crowing its competitive advantage. Well now the gorilla's awake, it's very focused and has a long term game plan that it is executing almost flawlessly. The ball is now in AMD's court. I have no doubts Barcelona will outperform current Intel offerings when it's finally released (it better for their sake.) But its window of opportunity will be short before Intel is their to trumpet yet another generation. The hopscotch will continue.

Intel is doing exactly what it should be doing. Intel had it's mis-cues in the past, but they have righted the ship. The problem for AMD is ANY mis-cue at this stage could be disastrous. It will be very interesting to watch it all play out.


RE: Intel is out for blood
By TodX on 5/15/2007 11:58:17 PM , Rating: 2
Found this
http://img503.imageshack.us/img503/5125/barcelonat...
on Fudzilla last night in this article
http://www.fudzilla.com/index.php?option=com_conte...
As you can see the article was pulled soon after being posted. I guess someone didn't want those numbers out. Then again, you could doctor up a photo like that in a couple minutes nowadays. Either way, I thought I'd post it anyway.


RE: Intel is out for blood
By Motley on 5/16/2007 1:40:09 AM , Rating: 2
Doesn't look unreasonable. One thing you should notice however in the CPU-Z test, the processor selection dropdown is NOT greyed out. In a single processor system, it would be. What you are seeing is atleast 2 top of the line AMD Quad core's being benchmarked against a single Intel processor that isn't even the top of the line currently.


RE: Intel is out for blood
By Matty P on 5/16/2007 5:35:06 AM , Rating: 2
Thats definately the case - I've just checked it out on a quad core server and a dual quad core server :) Interesting to note that the supposed AMD chips get just under double the points of the single QX6700... Looks like its going to be a very close run thing!


RE: Intel is out for blood
By Amiga500 on 5/16/2007 6:17:11 AM , Rating: 2
Does Barcelona not have SSE4A instructions?

Should they not be registering on CPU-Z?


RE: Intel is out for blood
By tdawg on 5/16/2007 2:15:05 PM , Rating: 2
Barcelona chips have an L3 cache, right? The screenshot doesn't have an L3 cache.

Read this:

http://www.dailytech.com/Barcelona+Benchmarks++Don...


RE: Intel is out for blood
By vignyan on 5/16/2007 2:21:11 AM , Rating: 2
:D
Completely Agreed with you!! :)


RE: Intel is out for blood
By Amiga500 on 5/16/2007 6:13:32 AM , Rating: 2
Do you not know that both Intel and AMD hand out processors to certain industrial companies for testing, and keep them under NDA?

Alot of people have seen the comparisons of Barcelona versus the Zeon quads. Its just they aren't supposed to talk about them.

Lets just say the clock-for-clock performance jump (Barcelona vs Clovertown) banded around the internet is pretty near the mark.


RE: Intel is out for blood
By TomZ on 5/16/07, Rating: 0
RE: Intel is out for blood
By Amiga500 on 5/16/2007 9:28:58 AM , Rating: 2
Yeap - of course, those chips already out in testing are not going to be the new spin cpus... which means their performance advantage clock-for-clock is on the low side if anything (compared to final production Barcelona chips).
Which would be a good thing for AMD would it not?

Note, I also said that it was a clock-for-clock rate. So with the silicon re-spin, they'll almost surely retain the same clock-for-clock advantage, but can run to 3GHz or whatever.

Also, this comparison was not made on benchmarks, but applications. Obviously cannot dicuss what applications exactly.


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