AMD Ryzen SKU and Price Information/Speculation.

[Agent-47]

I guess i grew cynical, seeing prices of hardware grow steadily year by year, so i have hard time believing now these rumors...or better said, its incredibly suspicious to me, that AMD would sell their new 8-core CPUs which are rumored to be pretty much equal in performance to Intel´s 8-core CPUs almost for the price of Intel 4-core CPUs... something does not compute. Either they are not going to be as fast as suggested, or these prices gotta be wrong. I did not expect AMD to be expensive as Intel obviously, but selling comparable product for 1/3 of its price? Why would they do that?

What Glo. said + to sell large volume to exploit economies of scale. It is possible to have a bigger net margin by selling more CPUs at a lower unit price .

 

[ShintaiDK]

They dont require a Wraith cooler for normal operation, they can use the HS65 95W cooler.

Images says otherwise. So feel free to document something else.

 

[Arachnotronic]

What Glo. said + to sell large volume to exploit economies of scale. It is possible to have a bigger net margin by selling more CPUs at a lower unit price .

Total profit is what counts.

If I have fixed operating costs of $100, and I have the choice of selling 20 widgets for $20 each at 40% gross margin or 40 widgets at $15 each at 35% gross margin, then which scenario is better?

 

[RoarTiger]

Images says otherwise. So feel free to document something else.

The image says it ships with a SR-3+ cooler not that it is required. Do you understand the difference?

 

[Dresdenboy]

What Glo. said + to sell large volume to exploit economies of scale. It is possible to have a bigger net margin by selling more CPUs at a lower unit price .

I found this diagram showing that in a simple way incl.:

http://www.lieb.com/Your-Marketing-Toolkit/Toolkit Atlas.htm

With kinked demand curves for duopolies, etc. we might try to have a look at the rest of the story. But due to lots of different SKUs populating many price spots with different feature sets and performance levels, it might quickly become very difficult to follow.

 

[Glo.]

Total profit is what counts.

If I have fixed operating costs of $100, and I have the choice of selling 20 widgets for $20 each at 40% gross margin or 40 widgets at $15 each at 35% gross margin, then which scenario is better?

AMD is much smaller than Intel, so they can "afford" selling for smaller margin. But is it, when you consider, that each CPU die is 20$, and they can sell for 500$?

 

[Arachnotronic]

AMD is much smaller than Intel, so they can "afford" selling for smaller margin. But is it, when you consider, that each CPU die is 20$, and they can sell for 500$?

Who said that these are $20 chips to manufacture?

 

[Dresdenboy]

Images says otherwise. So feel free to document something else.

This seems to be an argumentum ad ignorantiam. What's your exact proof? And how would you show, that there is no relation to the presence of XFR in the relevant CPU models?

The rendered image of the 3 coolers was fan made, so we still need to see the true coolers. Of course, the creator of the rendering could have seen the real things.

 

[Agent-47]

Total profit is what counts.

If I have fixed operating costs of $100, and I have the choice of selling 20 widgets for $20 each at 40% gross margin or 40 widgets at $15 each at 35% gross margin, then which scenario is better?

good example.
earning=> $20*20 = $400 and $40*15=$600.
fixed cost = $100 (cost of capital i.e. setting up the plant; cost of R&D; etc).
raw material/labor cost = $5 per unit (technically, labor cost reduces as we increase production and you not need extra labor to added units upto a certain point due to automation)
profit with $20 = 400 - 5*20 -100 = $200
profit with $15 = 600 - 5*40 -100 = $300

I have not done economics in 15 years, but the idea is to hit the "Optimal price range" that Dresdonboy illustrated. We of course don't know where this curve lies for GF, but I am sure AMD did the required math to maximize its profits.

This can be linked to why AMD might have asked Samsung to produce some chips for them as well, adding more production plants will shift the "Product earning" curve to the left enabling even lower prices, therefore higher demand and earnings.

 

[Agent-47]

AMD is much smaller than Intel, so they can "afford" selling for smaller margin. But is it, when you consider, that each CPU die is 20$, and they can sell for 500$?

true, but they are a company answerable to shareholders who only cares about maximizing profit. so they will not sell at a price that does not do exactly that.

 

[Crumpet]

It may only cost $20est to produce a die.

But there were millions spent on research and development.

You have to cover the cost of the failed productions.

You then have to cover the cost of the advertisement and packaging materials.

Etc, etc, etc.

Yes, i'm sure from a high end Sku they make reasonable profit, but those profits diminish quickly, especially considering the low end Sku's may not be making a profit at all.

 

[Agent-47]

You have to cover the cost of the failed productions.

You then have to cover the cost of the advertisement and packaging materials.


Yes, i'm sure from a high end Sku they make reasonable profit, but those profits diminish quickly, especially considering the low end Sku's may not be making a profit at all.

R&D and marketing costs are fixed no matter what price or how many units you sell. They get distributed evenly, so if you are selling more units, the proportion of R&D and marketing becomes smaller per unit sold/produced. Fixed costs sets the absolute minimum price for which you can sell your products, which is usually a lot lower than the optimal selling price. This will come into play if there is a price war between intel and amd. but now we are just talking about setting the entry price.

Even if you sell at a higher price, it may take longer to recover the investment made in R&D and marketing if you do not sell enough units at the higher price; as illustrated above.

 

[CentroX]

Good thing AMD hasnt had a John Fruehe person for ryzen marketing this time.

 

[Agent-47]

Good thing AMD hasnt had a John Fruehe person for ryzen marketing this time.

well if we look at the naming of the new processors, including the choice of "ryzen" over "zen", i think their marketing is still pretty abysmal

 

[Crumpet]

I still maintain that they should rename Vega to Shine....

 

[Doom2pro]

I still maintain that they should rename Vega to Shine....

I'm up! I'm up!

 

[inf64]

well if we look at the naming of the new processors, including the choice of "ryzen" over "zen", i think their marketing is still pretty abysmal

What is wrong with Ryzen? It is catchy and not sounding bad at all (IMO).

 

[Mopetar]

They could be naming the Ryzen refresh in such a way as to play of the Zen name as well. I would agree that Zen is a simpler and better name and they could have just played on the same theme for refreshes (e.g. call the next one Nirvana) instead.

I'm still surprised that their prices are so low given the performance leaks and speculation looking so good. Maybe it's just a fact that even with their performance there's almost no market above $450 or at least not enough to support what they want to do. I'm even more curious to see where their APUs based on Zen enter the market. I think that's the mainstream bread and butter for them.

 

[Agent-47]

What is wrong with Ryzen? It is catchy and not sounding bad at all (IMO).

Nothing much. Its just a catchier name to me.

But the skews, with the r7,5,3 and 1x00 model number just escapes me completely

 

[lolfail9001]

What is wrong with Ryzen? It is catchy and not sounding bad at all (IMO).

It does not end with "on".

 

[majord]

One of our Aussie Retailers has ASUS boards up for pre-order

Asus Prime B350M-A AM4 AMD B350: AU $128.70
https://videocardz.net/mobo/asus-b350m-prime-a/


Asus Prime B350-PLUS AM4 AMD B350 : AU $152.60
https://videocardz.net/mobo/asus-b350-prime-plus/



Asus Prime X370-PRO AM4 AMD X370: AU $245.85
https://videocardz.net/mobo/asus-x370-prime-pro/



Asus Crosshair VI Hero AM4 AMD X370: AU $380.63
https://videocardz.net/mobo/asus-x370-rog-crosshair-vi-hero/


http://www.eyo.com.au/items_c11_s1875_motherboards-socket-am4.html

To help with the pricing conversion... current AU price of (sort of) comparable Intel boards from same Retailer:

Prime B250M-A : AU$128.87
Prime B250M-Plus: AU$142.92
Prime H270 Pro: AU$183.06
MAXIMUS IX HERO: AU $417.53

bearing in mind those H chipsets are no OC! (hence the 'sort of' )

 

[Agent-47]

One of our Aussie Retailers has ASUS boards up for pre-order

Asus Prime B350M-A AM4 AMD B350: AU $128.70
https://videocardz.net/mobo/asus-b350m-prime-a/


Asus Prime B350-PLUS AM4 AMD B350 : AU $152.60
https://videocardz.net/mobo/asus-b350-prime-plus/



Asus Prime X370-PRO AM4 AMD X370: AU $245.85
https://videocardz.net/mobo/asus-x370-prime-pro/



Asus Crosshair VI Hero AM4 AMD X370: AU $380.63
https://videocardz.net/mobo/asus-x370-rog-crosshair-vi-hero/


http://www.eyo.com.au/items_c11_s1875_motherboards-socket-am4.html

To help with the pricing conversion... current AU price of (sort of) comparable Intel boards from same Retailer:

Prime B250M-A : AU$128.87
Prime B250M-Plus: AU$142.92
Prime H270 Pro: AU$183.06
MAXIMUS IX HERO: AU $417.53

bearing in mind those H chipsets are no OC! (hence the 'sort of' )

The link says no product found.

But 128 for a basic mATX board is pretty high considering there is no vrm cooler. Cheaper than Intel though on high end.

 

[majord]

link is a bit weird . Try refreshing the page.

 

[Doom2pro]

It does not end with "on".

Lets bring back the Duron...

 

[majord]

Lets bring back the Duron...

Duzen?