We can at least expect, that while getting closer to Intel's price/performance levels, demand for Ryzen will drop more quickly. But as I said, it's difficult to get the picture of all this happening, as there are tons of layered curves influencing each other for each chipmaker's product stacks and the overall market.
But let's stay at the less complex level. The other part might be interesting for a biz sim game. I found another nice diagram, showing the effects more clearly (and prices look more like CPU prices ):
An interesting point is the shrinking unit demand at lower prices. Could that happen for CPUs? I think, it could in cases like this: The curve depicts sales for just one specific model. At lower price points, the remaining system costs (maybe already ~$1K) might not justify buying that specific model, as the higher performing one might just cost $50 more.
True. very complicated to see when you have so many skews.
Another thing that got me thinking last night was what happens if intel starts a price war. it seems all the curves in your plot will move towards south-west-west, more dramatically for AMD compared to intel. That will lead to shirking demand profit and demand.
As for a fall in demand like you postulated, from the academic point of view, all the curves will move to the left, while the revenue will also fall of course.
Also, I am sure there is no economic model that can represent fanboyism purchases I like to think there are more intel fanboys compared to amd ones, especially considering it has been 15-18 years since K6/Thunderbird/K8 days.
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