Rahul Sood of VoodooPC seems to agree with me about this insane price war that is decimating operating income and even profits on both sides.

He also advocates, "fair, yet realistic" pricing and a realiztation that there will be a duopoly regardless of price wars and less of this means more money for newer faster chips.

Linkage!

Awwww ... the CEO of a company that sells overpriced crap is whining about low CPU prices cutting into his profit margins.

NOW I CAN ONLY SNORT TWO LINES OF COKE FROM A HOOKER'S BREASTS, NOT THREE. HOW WILL I FEED MY FAMILY?
\
Sood



Companies charge as much as they possibly can ... no less. Supply vs. demand.

So Intel and AMD should agree on prices? Illegal, my friend.

You are obviously emotionally motivated and not financially. Imagine a company that doesn't get $2500 per system.

But then the prices they charge are for custom craftsmanship and the company was worth enough for HP to buy them.

Hopefully Intel and AMD will listen. I'm really tired of being the only person that admits how much this is hurting the whole industry.

Do i detect some worry about AMD's future from you?

Just STFU, and enjoy cheap processor prices, while they last.

No, but fair market value was already established. People were buying just as many processors BEFORE the price war. He is not advocating prices that are too low or too high but "reasonable."

I paid $396 in Oct05 for a 4400+ and that to me was fair considering how much single core chips (even Steam is showing most people still have them) cost at the time.

Prices need to return to 05 levels. Hopefully AMD will raise the prices on Barcelona duals and quads while phasing out K8.

Prices will climb later this year with the introduction of Stars and 45nm C2D. Like someone said, enjoy the prices while they last.

Do i detect some worry about AMD's future from you?

Just STFU, and enjoy cheap processor prices, while they last.

I don't care that much. This was CPU news and reflects EXACTLY WHAT I HAVE BEEN SAYING.

CPUs don't work without mobos so they are only AS important. Mobo prices have stabilized to around $100 so paying a little more for the CPU shouldn't be a bother when X2 and ESPECIALLY Core 2 are OVERKILL for most applications and usage patterns.

Do a test with E6300 and 965EE and you STFU.

The industry as a whole is more important than a few dollars. Maybe I shouldn't care but I do.

Yes. That is called collusion and it is illegal.

Do i detect some worry about AMD's future from you?

Just STFU, and enjoy cheap processor prices, while they last.

I don't care that much. This was CPU news and reflects EXACTLY WHAT I HAVE BEEN SAYING.

CPUs don't work without mobos so they are only AS important. Mobo prices have stabilized to around $100 so paying a little more for the CPU shouldn't be a bother when X2 and ESPECIALLY Core 2 are OVERKILL for most applications and usage patterns.

Do a test with E6300 and 965EE and you STFU.Who's to say that '05 prices were fair and reasonable...Maybe they were too high, and the bubble got a much-needed burst.

We are end users, not investors. I like the price war and think this thread is stupid.

I think the "price war" only makes sense if it is sustainable. If Intel is undercutting at a level they can't maintain just to cut AMD out of the market then I agree that prices should be higher. But consumers never what to pay high prices whatever the longterm consequences (IE Walmart's popularity) so you won't here complaints here.

I'm an end user too. I think the price war is stupid. As cheap as I am I would have had LOTS to say if I couldn't find a QUALITY system for what I got one for.

Sure the FX62 was $1000 but the 4400+ was only $396 and the 4200+ was around $40 less. Single core chips like the 3700+ and 3800+ were half that and were just as good at games.

You're advocating both companies going out of business if dual core has to be as cheap as single core.

Have you not seen the ALL negative numbers in Intel's Q4? There will be a trickle down. I guess we can try to look at every OEM, VAR, etc. and see how healthy the industry is.

I have to ask if you bought or recommended any chips in 05.

I don't see how you can say that intel is under charging for their products when they are still posting sizable profits every quarter. Granted, not as much as in the past, but still far more than most companies in that market cap.

If intel were operating at a loss every quarter, your argument would have merit. But they are not. Most of us sympathize with AMD, but the hard truth is that they are getting their ass kicked right now. They must innovate and turn the curve and soon.

Keep in mind also that CPU unit growth% year over year is just a fraction of what it was 10 years ago. Therefore for AMD to grow, intel has to shrink. I don't believe intel wants to shrink anymore than it already has.

I'm an end user too. I think the price war is stupid. As cheap as I am I would have had LOTS to say if I couldn't find a QUALITY system for what I got one for.

Sure the FX62 was $1000 but the 4400+ was only $396 and the 4200+ was around $40 less. Single core chips like the 3700+ and 3800+ were half that and were just as good at games.

You're advocating both companies going out of business if dual core has to be as cheap as single core.

Have you not seen the ALL negative numbers in Intel's Q4? There will be a trickle down. I guess we can try to look at every OEM, VAR, etc. and see how healthy the industry is.

I have to ask if you bought or recommended any chips in 05.

Baron,

My apologies about my first post, I should have been more respectful and I thank you for being respectful to me inspite of my rudeness!

I think Intel is doing a reasonable job. They are profitting.

AMD is the one that could possibly be taking losses. However, AMD can't raise there prices because otherwise there would be very little incentive for people to purchase their products. Intel and AMD aren't really in a price war. Intel is setting the price/performance curve and AMD is doing it's darndest to match it. If AMD didn't lower their prices so drastically I wouldn't have bought my Opty in November. I would have taken the extra money and bought RAM and an LGA775 motherboard. I hope that by the time I upgrade that K8L will be killing Conroe so I can continue to purchase from AMD.

Intel's revenue only grew (slightly)with the market and certain sales and cost cutting methods. Operating income is down, profits are down, EPS is down ALL IN DOUBLE DIGITS. How is that a good thing or sustainable?

AMD should come out with at least 26% of the market from 23% in Q3, maybe a little less. They have reported significantly increased sales and we'll see tonight how things actually turn out.

As far as market growth, do you realize that 68% of the market is outside of the US? China has just really been cracked and they are 3X the size of the US. India is close to that also.
I believe growth is at about 13%(some analyst post). That means if 200 million PCs are sold this year 226 million will be sold next year and around 270 the next.

The market determines how large Intel is not Intel. The same goes for AMD.

If Intel were cutting prices to the point they are losing money to try to cut AMD out of the market then they would be fools. They have already had eyes staring at them in the past for possible monopolistic business practices. They wouldn't make that mistake I would think.

I am not too concerned overall as it means better market for those I DO care about, US, me and you and everyone here who is an end user and is reaping the benefits right now.

I seriously doubt that they (AMD and Intel) are making 0 profit off their chips, they might be making less profit than in recent years but still there is profit there or they would both be risking their demise. Its sort of like a couple years ago when no one was buying cars due to the high petroleum prices. That summer, car dealers were in a price war, 0% interest, some even cutting prices in half for some models just to move inventory. Now I'm not saying its apples to apples but the thing is they still weren't losing money, maybe the point is that CPUs already had a high margin of profit apparently and they're cutthing their profit, not going under.

Methinks the poll choices are more than a little slanted...

I'm an end user too. I think the price war is stupid. As cheap as I am I would have had LOTS to say if I couldn't find a QUALITY system for what I got one for.

Sure the FX62 was $1000 but the 4400+ was only $396 and the 4200+ was around $40 less. Single core chips like the 3700+ and 3800+ were half that and were just as good at games.

You're advocating both companies going out of business if dual core has to be as cheap as single core.

Have you not seen the ALL negative numbers in Intel's Q4? There will be a trickle down. I guess we can try to look at every OEM, VAR, etc. and see how healthy the industry is.

I have to ask if you bought or recommende