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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 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


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