AMD DOES have a recent history of undercutting Intel on the CPU side. Especially in 2017 when they hit the 6800k hard at $499. Not sure they'll sell a 5 GHz 8c chip this year for $250, but expect something close . . .
Indeed. It's hard to know what to expect from Navi on the price side given recent history. AMD simply hasn't had a cheap design to sell for awhile, aside for Polaris. And Polaris prices were skewed by mining.
The other thing to consider is available market share. AMD still has a large market to pick up with their CPUs, so aggressive pricing makes a lot of sense. dGPUs are a lower volume business. Yes, they can potentially steal marketshare and mindshare from nVidia. It's a smaller market, though, and it's shrinking. That's one of the many reasons why NV and AMD have been pumping up the price thresholds on their products.
Joel Hruska (ExtremeTech):
There has been a surfeit of what Alan Greenspan might have called "irrational exuberance" surrounding AMD and 7nm technology for both Ryzen and Navi. It appears to be fed by fanboys with no concept of how over-hyping the technology cycle behind a company can lead to fans being angry and even vengeful when AMD "fails" to deliver on promises they never made. Widespread coverage of these rumors can lead to them being treated as facts or near-facts, despite AMD doing absolutely
nothing to confirm them.
The basic argument is the same, and goes like this:
1). AMD is about to do something extraordinary.
2). AMD, being run by idiots, will choose to sell their extraordinary new product for roughly half the price as the competition, despite the fact that what AMD needs, more than
anything, is stable, long-term profits and strong revenue gain across multiple market shares.
3). Even though the only way to establish #2 is by investing in one's own products and growing revenue, people expect that AMD will starve itself in the name of gaining market share, even though "Lose money on every product and make it up with volume," is not actually a winning move.
4). This practical issue will be solved with chiplets, because chiplets are magic, and 7nm wafers are not more expensive, and design costs have not risen, and AMD is not trying to break into markets like AI and deep learning where Nvidia has an enormous institutional advantage. AMD certainly isn't facing an entrenched competitor like Intel, whose quarterly profits dwarf AMD's by orders of magnitude.
5). The fact that 10nm has slipped so badly is proof that Intel can no longer compete and will slowly be destroyed by ARM and AMD while AMD takes over its market and rules the Earth.
The most annoying thing about all of this is that you could hit "Rewind" and turn the clock back to early 2006. They're basically the
same arguments with updated product names (and, of course, the fact that AMD didn't own ATI in early 2006).
I expect AMD to take advantage of 7nm to build a much more competitive Navi than Vega or Polaris have been.I think they will offer a much higher level of performance per dollar and performance per watt. I have not made specific predictions past that because the rumor mill has done a
lot of churning about Navi and most of it has been stupid. AMD will not launch an RTX 2070 killer at $250 because AMD isn't going to leave all that money on the table when it desperately needs revenue to fuel its own R&D. AMD wants to play in AI and DL. Nvidia owns those markets so completely, AMD is basically fighting to be a footnote. So clearly, the right solution is to make as much money as possible and plow that back into the business as quickly as possible, in order to build more aggressive AI-focused products on 7nm and steal a march on Nvidia.
Just kidding.
What I meant was, "The smart thing to do is to sell each GPU for one penny above cost, to make the fanboys happy."
(To be absolutely clear, I am not annoyed with you or any commenter specifically. I am tired of chasing down and debunking bad rumors based on dumb data).
I think Navi will be good. I share your concern about how good it will be because AMD has had a hard time securing a straight win against Nvidia in most market segments (the RX 570 is a blowout win against both the GTX 1050 Ti and the GTX 1650, but that's the exception that proves the rule). I think the $330 price tag on an RTX 2070 competitor is probably low, but it's not unbelievably,
insanely low. The $250 rumor was.
The rumor mill all-too-often confuses “AMD will make a very competitive / superior play in terms of performance per dollar” with “AMD will gut its own profit margins in the name of offering an unsustainably good deal.”