Intel Price Cuts in Full Swing
Anh Tuan Huynh
July 22, 2007 11:31 PM
comment(s) - last by
July 22 has arrived and Core 2 Quad Q6600s for under $300
Intel last week released a new lineup of
1333 MHz front-side bus processors
at low price points, but held off price cuts for existing processors
until July 22
. The day has arrived and Intel price cuts for existing Core 2 Duo and Core 2 Quad processors are going into effect at various retailers.
Intel Core 2 Quad
Intel’s star for this round of price cuts is the quad-core Core 2 Quad Q6600. The price cut cuts the Core 2 Quad Q6600 price in half to $266 per processor, in 1,000-unit quantities, from the existing $530 price. The Core 2 Quad Q6600 is the only sub-$300 quad-core processor available on the market. Intel has positioned the Core 2 Quad Q6700, which launched last week, at the $530 price point.
Retailers have adjusted prices of the Core 2 Quad Q6600 accordingly. A quick search for the processor at online retailers shows prices starting at $275.
have the processors listed below $300. However, Newegg has already sold out of Core 2 Quad Q6600 processors.
Intel Core 2 Duo
The price cuts also affect
Core 2 Duo E4000-sequence
processors. Intel’s Core 2 Duo E4400 drops $20 to $113 to make way for a new Core 2 Duo E4500. The new Core 2 Duo E4500 debuts at a $133 price point with a 200 MHz clock speed advantage.
Intel Quad Core Xeon UP
If the $266 price tag is still a bit too steep, Intel plans to cut prices of its
Xeon processor lineup in August
. The Xeon price cuts affect
quad-core Xeon UP and MP
processors. The Intel quad-core Xeon processor lineup includes a 2.13 GHz X3210. Intel plans to drop the price on the Xeon X3210 to $224 come August.
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The Intel game plan........
7/23/2007 2:26:05 AM
Roger Kay, an analyst with Endpoint Technologies Associates, said the high end of the market is good for companies looking for a product with a "halo" effect that will help the rest of the product line. The problem is that products like Barcelona will not sell in the volume that AMD's low-end desktop chips do, Kay said.
"There's not enough volume there to support the whole company, and
AMD's bread-and-butter products are still the low-end desktop processors," he said.
"Intel is trying to confine AMD to the lower part of the market," Reynolds said. "Intel doesn't have to worry as much about the lower prices, but AMD is forced to play there and there's more pressure on them."
In a research note, analysts at Technology Business Research found a similar situation between Intel and AMD.
"Intel will continue to compete at the low end," wrote to TBR. "However, we anticipate that the chip maker will be selective in the deals it enters into in these areas. As a result, AMD may be able to gain share in the lower reaches of the PC market, including both desktops and notebooks, by offering PC makers more favorable pricing than its larger rival. However, it may do so at reduced profitability."
However, analysts said that Intel is also getting ready to go head-to-head with AMD in the high end of the market—mainly servers and high-priced notebooks. With a better financial outlook and a strong product roadmap, Intel could prove a major challenge for AMD, which is making a big bet on its Barcelona and new desktop models.
"We believe that Intel is likely to be successful in gaining share in areas such as servers during the third quarter, despite the pending arrival of AMD's new quad-core Opteron processor in September and its Phenom desktop processor shortly thereafter," wrote TBR.
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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