swilli89
Golden Member
- Mar 23, 2010
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I assume we leave die area out of the equation.
Considering AMD does come up with a competitive product from a performance perspective, how do you reckon prices will evolve? Do you really think Intel will let AMD have a hefty piece of the pie just because they want margins to stay high? My gut instinct says they will go nuclear rather than concede precious market share. If anything, it will be Intel bringing the prices to the ground because they can.
On the other hand, if AMDs product fails to deliver as many predict it will... how much is a 8 threaded BD CPU today?!
Great that you bring up a potential move by Intel. Let's turn to history for some context.
In 2003 Intel was riding high on its Northwood based Pentium 4's. They beat the Athlon XP's by a fair margin, but not quite as bad as current Skylakes are beating up AMD's lineup.
Q4 2003 AMD launches its Athlon64. Its totally trumps what Intel is offering. At 2.0Ghz it beats the Pentium 4 @ 3.2Ghz. It is an utterly better product in every sense of the word (empowered by an nVidia chipset, no less :sneaky 50% better IPC and lower power consumption.
Oct 2003 Pricing
Athlon64 3200+: $414
Pentium 4C 3.2: $590
Now this is with Intel getting demolished by AMD's offering. If AMD merely comes out with a competitive product, based on historical data, do you really want to say that "it will be Intel bringing the prices to the ground because they can."
Intel will protect their margins just like they always have. Sure, they will adjust, but AMD will hopefully once again be relevant and not have to price their own offering too low either.
AMD doesn't need to get a majority of the market. They just need some more OEM wins for both desktop and laptop, some data center design wins (efficiency key here), and a bigger share in the home DIY builder.
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