AMD speaks about price cuts to match intel.

Legenic

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it's a different situation now though. intel is going to be making faster processors for less money, not just processors for less money.

AMD will have to cut at least some imo.
 

pengwin

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i dont care why?


Cheaper prices = me using less money. and thats what matters to me, when i go tto newegg and i see a lower price i buy.
 

Ycon

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Let me translate:
"We intended to build processors that offer good performance for the money in the past, but now we decided to go the greedy way and we just want to rip off our customers instead of trying to offer the customer better prices just like the competition does."

Thats what they would say, if they werent using marketing-language.
 

Pippero

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Guys, get real.
If Intel sells faster processors for less money, nobody will buy AMD.
Not even the most idiotic of the fanboys.
This statement AMD has made is IMHO more of a signal to the markets to indicate that they won't rush into dumping their prices or engage in a price war.
But of course, they'll have to position their offering based on its real value.. and given the prospected performance/price of Conroe, this won't be an easy task.
 

JonathanDeane

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I think they will have to lower prices at least for a while... I have to wonder what this will do to AMD's profits. Didnt they just become profitable ? Ahhh well lower prices are always a good thing maybe I can finaly get a couple of X2's for my 2 A64 rigs. As it stands right now it was just tooooo expensive 300$ a pop for the cheapest X2. They should cost about 150$ :)
 

qurious69ss

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Guys, get real.
If Intel sells faster processors for less money, nobody will buy AMD.
Not even the most idiotic of the fanboys.
This statement AMD has made is IMHO more of a signal to the markets to indicate that they won't rush into dumping their prices or engage in a price war.
But of course, they'll have to position their offering based on its real value.. and given the prospected performance/price of Conroe, this won't be an easy task.

Exactly, I think that AMD is at a crossroads here between choosing whether they will pick the investors, or try to please their fan base of millions of loyal who have spread AMD's performance over Intel practically by word of mouth. Of course they will aim for both, but that would be very difficult for them in the near future since investors always look at the bottom line and margins. If AMD would try to compete with Intel in a price war that would seriously hurt both profits and margins, and investors would dump the stock. Intel on the other hand is at a position where its stock is at a 3 year low and its profit loss and low margins are already reflected in their stock. So I believe that based on their comments, they probably feel that they have achieved a level where they don't necessarily need to please their fan base anymore, and that their products can speak for their selves. We will see how this pans out in the 2H of 06.
 

BaronMatrix

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Let me translate:
"We intended to build processors that offer good performance for the money in the past, but now we decided to go the greedy way and we just want to rip off our customers instead of trying to offer the customer better prices just like the competition does."

Thats what they would say, if they werent using marketing-language.


That's unfair. AMD has survived when Transmeta, Cyrix, NatSemi, and others have been bulldozed by Intel. WHy should they lower prices? Core 2 has to compete with P4. Unless Intel shorted the last few runs they will be knee-deep in crappy space heaters until October.
 

BaronMatrix

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Guys, get real.
If Intel sells faster processors for less money, nobody will buy AMD.
Not even the most idiotic of the fanboys.
This statement AMD has made is IMHO more of a signal to the markets to indicate that they won't rush into dumping their prices or engage in a price war.
But of course, they'll have to position their offering based on its real value.. and given the prospected performance/price of Conroe, this won't be an easy task.

Exactly, I think that AMD is at a crossroads here between choosing whether they will pick the investors, or try to please their fan base of millions of loyal who have spread AMD's performance over Intel practically by word of mouth. Of course they will aim for both, but that would be very difficult for them in the near future since investors always look at the bottom line and margins. If AMD would try to compete with Intel in a price war that would seriously hurt both profits and margins, and investors would dump the stock. Intel on the other hand is at a position where its stock is at a 3 year low and its profit loss and low margins are already reflected in their stock. So I believe that based on their comments, they probably feel that they have achieved a level where they don't necessarily need to please their fan base anymore, and that their products can speak for their selves. We will see how this pans out in the 2H of 06.


WHat none of you see to rememer tis that AMD is still worth what they charge. They are not competing against Core 2 at the time. IF that were true Intel would have went out of business, since for the last 3 years they have been selling chips that can't compete with Athlon but cost more.

So accordign to you, NO ONE bought a Pentium D. AT ANY SPEED.
 

chuckshissle

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I don't think AMD could match the price cuts done with that of Intel. I mean judging from AMD's sales and market share it's a corporate suicide to do so. It's not like AM2 could expect high sales when it comes out.
 

doggykyle

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They will only be able to be price competitive and still turn a profit with 65nm production.

Hope they get it on-line ASAP.


Whats taking them so long to get it online? are they just waiting to release it, or are they having serious issues??

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Fighting online is like competing in the special olympics...even if you do win, you're still retarded
 

k2000k

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Baron makes a point. For years the Pentium was getting thrashed by AMD but they are fine. AMD will take a few hits, but if they concentrate on producing a new architecture then they will be fine in the future.
 

Bluefinger

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They will only be able to be price competitive and still turn a profit with 65nm production.

Hope they get it on-line ASAP.


Whats taking them so long to get it online? are they just waiting to release it, or are they having serious issues??

---------------------------------------------
Fighting online is like competing in the special olympics...even if you do win, you're still retarded

First of all... AMD has to refine the 65nm process for commercial production, and then refine the new processors that will be manufactured. This, of course, takes time. Plus, AMD has to build up a reserve of CPUs to act as a buffer in case demand exceeds production, which would give AMD time enough to react to the demand and increase production, but this again, takes time. All in all, its best not to rush things, but then again, its good not to delay, so I can understand why AMD is sticking to its set deadlines
 

qurious69ss

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Let me translate:
"We intended to build processors that offer good performance for the money in the past, but now we decided to go the greedy way and we just want to rip off our customers instead of trying to offer the customer better prices just like the competition does."

Thats what they would say, if they werent using marketing-language.


That's unfair. AMD has survived when Transmeta, Cyrix, NatSemi, and others have been bulldozed by Intel. WHy should they lower prices? Core 2 has to compete with P4. Unless Intel shorted the last few runs they will be knee-deep in crappy space heaters until October.

If I remeber correctly, at that time all these companies inlcuding AMD were actually only competing in the low end of the cpu market and they (AMD) had a better product then the rest of the companies that went under. AMD back then had minimal market share in the cpu industry and profits were unheard of so they were able to fly under Intel's radar. Now it looks like Intel has their sights set on AMD in both performance and price. Although it could only be for a couple of quarters, that just might be enough to scare investors away from this company. Investors realize that in a theoritical scenerio were AMD and Intel are equal at performance and price that Intel would have the advantage because of capacity, manufacturing, marketing, money etc.. To answer your question about the p4 competing against the Core2, well actually it looks like Intel will be moving cutting prices on the P4 down to low end market, low enough to compete against the semprons. This I believe is to get some of the retail market share back. I can see it now.... at best buy, a $399 3.0ghz P4 up against a $399 sempron.
 
As said above. For a long time the p4 was getting crushed my the K8's
and yet there was not "intels going down threads" all over the place

It is just stupid to see all the Conroe Hype.... Yes its a good cpu....but it is going after a 3+ year old amd cpu... Duhhh?

EDIT

also before the AM2 topic comes up..... its just 939 with ddr2
 

teldar

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I think what many people are forgetting is that AMD has SAID they are willing to lose desktop competetivness to Intel for a while. They are focusing on server processors where they will hold a technological advantage because of the I/O with hypertransport vs. the FSB Intel will still be using.

The short of it is AMD will be beat in the desktop and they already know it. And they can't do anything about it right now so they aren't going to. They are going to club Intel's head in with high end 8 way quad core server processors because their processors scale better.

Period


Teldar
 

Anoobis

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AMD still has the best processors currently available in the desktop market. As soon as Conroe is unleashed they will lower their prices, but until then they are going to make as much money off of their current lineup (including AM2) for as long as they can. They've made a name for themselves and need to make as much money off of it as they can before Intel starts gaining ground again. Most people won't even know what a Conroe, AM2, Core 2 Duo, etc, is until the holiday season. AMD knows they can still make money because of that. This is why competition is a good thing.

Let me translate:
"We intended to build processors that offer good performance for the money in the past, but now we decided to go the greedy way and we just want to rip off our customers instead of trying to offer the customer better prices just like the competition does."

Thats what they would say, if they werent using marketing-language.

Intel uses the same marketing language & has just as much greed. Intel not only can, but needs to market Conroe at a better price point than AMD. They have much to lose if they don't start getting aggressive. They've learned that AMD can compete with them and that they (Intel) are no longer the top dog across the board. They have no choice but to get competitive now, something they haven't been doing lately even though they were more than willing to use that same marketing language to make people think they were with their current product line-up.

It's just business. It's about making money. Plain and simple. Neither Intel nor AMD care about what's best for YOU. They only care about your money and their bottom line.

Investors won't run away from either one right now because they'll want to invest in both companies. I would think more along the lines of more investors coming onboard with both of them because they see the competition is going to heat up. Both companies have proven that they can do very well when challenged. Investors won't jump ship until one or the other starts drowning. Neither company is even close to that at this point.
 

the_vorlon

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Reality time....

Based on what we have seen, an Athlon FX62 will perform somewhere between the 2.13 ghz Conroe and the 2.40 ghz Conroe. (Prices at $244 and $316 respectively)

So even taking into account rampant AMD Fanboyism, this make the FX62 a $279 part.. (or more likely a $2,000 8xx Opteron) but in reality.... it's not a retail part anymore...

AMD will likley push out a few speed bumps (3.0, 3.2, maybe 3.4 ghz), maybe Zram....K8L ahead of schedule.... who knows, but the Universe has changed, and the faster AMD reacts the better chance they have to live.
 

qurious69ss

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I think what many people are forgetting is that AMD has SAID they are willing to lose desktop competetivness to Intel for a while. They are focusing on server processors where they will hold a technological advantage because of the I/O with hypertransport vs. the FSB Intel will still be using.

The short of it is AMD will be beat in the desktop and they already know it. And they can't do anything about it right now so they aren't going to. They are going to club Intel's head in with high end 8 way quad core server processors because their processors scale better.

Period


Teldar

I agree, only problem with is that 8 way servers are in the 1K, 4 way are in the 100K, while 2 way and single servers each are in the millions of sales per quarter. While amd will continue to have the advantage in the 4 way and 8 way servers they will lose market share in the 1-2 way servers to the woodcrest. Question is will the high end server sales be enough to keep them out of the red.
 

qurious69ss

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As said above. For a long time the p4 was getting crushed my the K8's
and yet there was not "intels going down threads" all over the place

It is just stupid to see all the Conroe Hype.... Yes its a good cpu....but it is going after a 3+ year old amd cpu... Duhhh?

EDIT

also before the AM2 topic comes up..... its just 939 with ddr2

Well actually there were, only difference is that intel continued to sell alot of them for high margins even with the atholon64 beating them performance wise. I'm just not sure that AMD will be able to do the same when the core2 comes out.
 

FLA94FD

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Let me translate:
"We intended to build processors that offer good performance for the money in the past, but now we decided to go the greedy way and we just want to rip off our customers instead of trying to offer the customer better prices just like the competition does."

That's what they would say, if they werent using marketing-language.


That's unfair. AMD has survived when Transmeta, Cyrix, NatSemi, and others have been bulldozed by Intel. WHy should they lower prices? Core 2 has to compete with P4. Unless Intel shorted the last few runs they will be knee-deep in crappy space heaters until October.

P4 will not be competeing with core 2 exept on benchmark sites and on forums.

Most of the desktops are going to the business world. In that world modern process don't work very hard, mostly thin client based apps. For example we are about to buy 1000 desktops P4 3.0 to be exact if a 3.2 cost $10 more that's an additional $10k which for nearly zero ROI. Also we don't like to make changes with configuration regardless of how low the risk. If I authorize the purchase of $600,000 worth of PCs that cause some kind of glitch with our code and we lost 1 days worth of work About 2 million in review I would have a lot of explaining to do. Risk extremely remote do I care no.

There will be no competition within Intel. This is a battle for the much lower consumer market who doesn't for the most part doesn't refresh there system every 3 years.

If Core 2 is as good as reported so far AMD will have to cut cost to sell CPU's. Core 2 will is not expected to be in volume until Q4 so don't expect the price to fall much sooner.
 

teldar

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AMD still has the best processors currently available in the desktop market. As soon as Conroe is unleashed they will lower their prices, but until then they are going to make as much money off of their current lineup (including AM2) for as long as they can. They've made a name for themselves and need to make as much money off of it as they can before Intel starts gaining ground again. Most people won't even know what a Conroe, AM2, Core 2 Duo, etc, is until the holiday season. AMD knows they can still make money because of that. This is why competition is a good thing.

Absolutely. Intel still hasn't fixed a release date for the core 2 duo and by the time it hits as being mainstream, AMD could well have plans on shipping their 65nm parts.
It doesn't change the fact that AMD knows they aren't going to be winning the speed crown for a while.

Doesn't mean their processor lineup is a load of crap either though.

Teldar
 

qurious69ss

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AMD still has the best processors currently available in the desktop market. As soon as Conroe is unleashed they will lower their prices, but until then they are going to make as much money off of their current lineup (including AM2) for as long as they can. They've made a name for themselves and need to make as much money off of it as they can before Intel starts gaining ground again. Most people won't even know what a Conroe, AM2, Core 2 Duo, etc, is until the holiday season. AMD knows they can still make money because of that. This is why competition is a good thing.

Absolutely. Intel still hasn't fixed a release date for the core 2 duo and by the time it hits as being mainstream, AMD could well have plans on shipping their 65nm parts.
It doesn't change the fact that AMD knows they aren't going to be winning the speed crown for a while.

Doesn't mean their processor lineup is a load of crap either though.

Teldar

Woodcrest in June, Conroe in July, and Merom in August. Oh and they also expect to have 60% of the chips out by the end of they year to be based on Cor2 arc.