Intel's Kaby Lake ( 10nm) CPU price reduction possible ?

Kaby Lake is 14nm, Cannon Lake 10nm, at least according to my information
also smaller chips are more difficult to produce
also the price is determined more by marketing than by production cost.
even if kaby lake would be 25% cheaper to be built, they would cost the same as Skylakes
...unless the ZEN chips are really as good as their hype, then they could be forced to lower their prices. but I highly doubt it.

First, Kaby Lake won't be a smaller nm chip. It will simply be a redesigned 14nm chip, so no price reductions will occur. Besides, Intel has to pay for all their R&D somehow.

Kaby lake is not a 10nm chip, it is still on the same 14nm node as Skylake and would most certainly not be cheaper, i expect it will be a bit more expensive than Skylake considering the entire platform cost CPU+Mobo to account for the extra R&D, added features and to probably encourage people to buy the massive Skylake stock that Intel still has.

Intel's i5-2500 was ~$200 while the i5-6600 is ~$220. The i3 range used to cap at $120, now it caps at $140.

With mainstream PC sales continuing to decline, Intel is offsetting their volume revenue loss by increasing prices, so don't expect Kaby and Cannon to make things any cheaper. Unless Zen puts some serious downward pressure on Intel, prices will continue inching up.

the trick with intel cpu buying now as there dropping newer cpu every year now and there not blazing faster then there older cpu. is buying one or two gen old chips and mb. if you can find buys on haswell or skylake when kurby lake drops the better it is for the home builder.

Hi Akash,

As the other two posters have mentioned.
When a new node process is created for smaller creation in Nm Nano meter scale for transistors, and integrated circuits.
It means you can pack more of a transistor count into a smaller required space to create the cpu.

The more transistors you have or can create in a given area or scale the more powerful the cpu will be.
Also due to the size decreasing of each transistor the power consumption of the over all cpu is reduced.

When it comes to a cost for new technology, or cpu`s you will always pay a premium price.
This is due to the fact that the smaller the Node process the more harder or likely it is that you will get production yield problems when producing a cpu on a set Nm scale.

The percent of working cpu dies that are fully functional as intended, vs the amount of cpu dies that fail when a silicone wafer is created with many cpu dies on it.

reflects on the end price of what you will pay for one working cpu of a set speed or generation in the road map of future cpu`s that come to market.

Say you had a yield rate of a 10Nm cpu rated as a I7 or an extreme model of Intel cpu that worked at 6 Ghz speed.
But for each silicone platter or substrate used to create the cpu`s could fit up to 250 cpu dies on it.

And out of each silicone platter only 5% of the total yield produced from one silicone platter resulted in a I7 or an extreme model of Intel cpu die that worked at 6 Ghz speed.

Then the cost of that model of cpu would be more expensive to you the buyer of it. Due to a low quantity count for that model of cpu in the range.

If the successful yield percentage improves. then it off sets the price of each cpu die or wafer created that can be used from the silicone platter.

When a new process is created for a new line or generation of a cpu range.
The price when first released is always more expensive for that model of cpu created.

But as time goes by they perfect the process so the working yield percentage of a set cpu die increases.
Then the price of the cpu over time will lower in cost.

And Cpu dies that don`t make the grade for a set model number or range of cpu of a silicone platter where it may hold up to 250 cpu dies.

Go through a process of testing where depending on how functional each cpu die is.
It is re bagged as a lower end model of the cpu range, in the speed it can run at, but also the model.

Example a I5 cpu instead of a I7 if part of the cpu is not fully functional in transistor count.

Since 2011, the US dollar lost 7% of its value, so a $200 i5 in 2011 dollars would be $217 in 2016 dollars.