AMD Price Cuts Have Already Started!

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  1. ...Everyone willind to upgrade a S939 will better do it now, because I don't know how much the supplies will last and $114 for a X2 3800+ that in Dec. 2006 had disappeared is the end of the world.
  2. 8O . o O (Daaaammmmnnnnn!)

    :oops: . o O(has anyone seen my lower jaw?)

    Edit:

    I remember the 1st time laid eyes on the 939 X2 4200-4400, and the price was.. Geesh, whats the point in remembering. :lol:
  3. Yep, seems like a good time for those who wants to pick up an Athlon X2 on the cheap. While these new price cuts certainly brings heat on to the competition, I can't see how long AMD and Intel can sustain themselves on such thin margins.

    This is good for the consumer but it certainly does not bode too well for either AMD or Intel in the long run.
  4. IMHO - AMD have priced themselves right back into the low end, especially when you consider the price of AM2 motherboards also..
  5. im plan on going to an x2 s939 over my current 3700+.
    looks like now is the time to do it. 8)
  6. I just have to say that it really P*ss*s me off that you can get the X2 socket AM2s 4200+ for 111, but the cheapest S939 X2 3800+is still 114 or whatever.


    I like AMD, but this latest strategy is BS.
  7. The problem is that there isn't much difference between the processors besides price and performance. Whoever has the best combination will get the business, pretty much leaving AMD out to dry for the moment. Well, now that I think about it, some people go with Intel for some reason... businesses seem to love Intel processors for some reason, regardless of the price and performance. Hardly ever see an AMD anything in an office.
  8. Yeah, Fry's had the 4200 with a MOBO for 120 this week. I was pretty surprised -- the MOBO was a cheap ECS, but the specs weren't bad (DDR2 800, etc.). I don't know about you all, but I'm down to build a dual core rig for $250.
  9. Quote:
    Yep, seems like a good time for those who wants to pick up an Athlon X2 on the cheap. While these new price cuts certainly brings heat on to the competition, I can't see how long AMD and Intel can sustain themselves on such thin margins.

    This is good for the consumer but it certainly does not bode too well for either AMD or Intel in the long run.


    Intel will post a profit of over a billion dollars this quarter, they will have no difficulty sustaining this indefinitely. C2D prices still have not changed at all since their release 8 months ago and are not scheduled for a price cut for another month. This is not about Intel. AMD is just having a hard time moving its product atm. That's all there is to it.
  10. Quote:

    AMD may be having problems with understanding OEM demand, allocation, and order cutting.... OEMs want to make money, and in retail the margins are thin.... they (OEMs) want to have their cake and eat it to.... low costs CPUs, uninterrupted supply line, and a CPU vendor who will eat it when they do not hit sales targets.... Intel has dealt with this for years, AMD is relatively new to the game.

    Jack


    Hector pretty much said as much at the Morgan Stanley conference a few weeks back. What he didn't say was anything about the difficulty they were having moving inventory through the channel, or anything else regarding current operations. Hector was amazingly evasive through that whole presentation, particularly in the face of a revenue warning issued that very day. He refused even to acknowledge that AMD was very likely headed for a Q1 loss. You could hear the irritation in the analysts voices. All Hector would talk about was how "excited" he was about his vision. To paraphrase Gerstner, the last thing AMD needs right now is a fing vision.
  11. Wow! and everyone thought AMD gross margins were bad last quarter. This is gonna be bad.

    ... But,i n the meantime,

    I think it is time to upgrade that Athlon XP 2000 that my wife uses to a dual core.

    X2 3600 with board for 120 is really hard to pass up.

    @Baron at this point I completely agree that netburst anything shouldn't be sold for more than $50
  12. Quote:
    Wow! and everyone thought AMD gross margins were bad last quarter. This is gonna be bad.


    AMD's costs are fairly fixed, (as are any semiconductor company) fabs cost a few $mil a day to run whether they are making chips or not. AMD must run the fabs at close to 100% and sell whatever they can make, whatever they may get for them, this is there only option right now.
  13. 250 dollar 6000+!!! holy crapstick...nab one and wait for a bombass AM2+ board...

    I know this has been said but it must cost like 1 dollar per cpu....to actually manufacture it...its all the business side of it that jacks up the price!!
  14. :arrow: I know,ain't it great! I can finally build a gaming PC for my kid so he will leave my C2D gaming box alone!
  15. Quote:
    Wow! and everyone thought AMD gross margins were bad last quarter. This is gonna be bad.


    AMD's costs are fairly fixed, (as are any semiconductor company) fabs cost a few $mil a day to run whether they are making chips or not. AMD must run the fabs at close to 100% and sell whatever they can make, whatever they may get for them, this is there only option right now.

    It's not necessarily their only option. Cutting prices 20% in order to move that last 10% of production is losing you money across the board, even if your cost of production is zero. I can't help but think that is what is going on with AMD right now.
  16. I'm saying this from a consumer standpoint:

    WOOHOO! AMD's pricing rocks. They've found something they can beat Intel at:

    Low-End dual core


    For people that aren't doing heavy duty stuff an X2 3800+ sub $100 just rocks!
  17. In my Newegg shopping cart I have logainofhades' exact configuration: a 3600+ Brisbane/Biostar TForce 550 combo, two gigs of G.SKILL DDR2 800 memory and the Freezer 64 Pro, all for less than $350.
  18. Quote:
    Yep, seems like a good time for those who wants to pick up an Athlon X2 on the cheap. While these new price cuts certainly brings heat on to the competition, I can't see how long AMD and Intel can sustain themselves on such thin margins.

    This is good for the consumer but it certainly does not bode too well for either AMD or Intel in the long run.


    Intel will post a profit of over a billion dollars this quarter, they will have no difficulty sustaining this indefinitely. C2D prices still have not changed at all since their release 8 months ago and are not scheduled for a price cut for another month. This is not about Intel. AMD is just having a hard time moving its product atm. That's all there is to it.

    AMD may be having problems with understanding OEM demand, allocation, and order cutting.... OEMs want to make money, and in retail the margins are thin.... they (OEMs) want to have their cake and eat it to.... low costs CPUs, uninterrupted supply line, and a CPU vendor who will eat it when they do not hit sales targets.... Intel has dealt with this for years, AMD is relatively new to the game.

    Jack

    i don't think AMD management really cares. they seem to think all their problems will go away somehow if they get 30% market share. till then they will whore out their chips at any price.
  19. AMD is purging out the old stuff as new chip is going to replace it, just like the Core 2 Duo.
  20. I hear that Mcdonalds is gonna start giving away X2 3600s in their happy meals.
  21. but to make the value fair compared to the usual toys, should it not also incluce a spiffy ATI GPU to boot!!! :twisted:
  22. hmmmm,

    I wonder if AMD is gonna get nailed for predatory pricing


    oh well, Im off to get my cheap x2 3600 for my HTPC.

    cheers all
  23. i agree, the standpoint of AMD might be the introduction of the Barcelona's and the Kuma's. Much like Intel, they just lower their pricings when something big is gonna come out of store shelves, though they boot up with different strategies, its still a 1 for 1 scenario, IMHO AMD's pricing is not for vast profit, but for their X2 offerings to be sold as a market share.. and apparently, if a procs gen is gonna be replaced by new ones, of course they're gonna drop out in price to allow the new offerings to be sold too..
  24. In order to have a fire sale to prep for a new chip release you have to have a new chip and have ramped up some sort of stockpile of that chip. AMD is in big trouble.
  25. Quote:
    Intel will post a profit of over a billion dollars this quarter, they will have no difficulty sustaining this indefinitely.

    That's less than 1% ROI. I hope that's after Paul and the boys take thier big bonus for keeping AMD down.
    How long do you think the shareholders will keep quiet about returns lower than the bank?
  26. Funny thing is, back in 01, Intel filed a complaint against AMD for doing the same thing. ( I think it's called dumping)
    Now AMD can just say "Well they started it."
  27. I'm firmly convinced that at these prices, AMD is the way to go for users in the low to mid-range segment who aren't interested in overclocking. Intel can't even come close to competing with the 3600+ X2 Brisbane at $75, and you can even have a 5200+ X2 for $200--$25 cheaper than the E6400 and better stock performance to boot.

    All contingent on the lack of desire to overclock, of course.
  28. It's painfully obvious that this is a fire sale to push the inventory pig through the pipeline.

    AMD is bleeding cash, they need to generate short term cash at nearly any cost. They also need to clean up their inventory concerns before attempting to secure the additional financing.

    I do agree with the OEM statement. Now that Dell is letting Intel play in the low end CPU space w/ equal footing... AMD needs to stay agressive. The average joe is going to go Intel Inside most of the time.
  29. I suspect a bit of the price drop resulted from AMD seeing their orders for CPU's drop way off, in the face of the price/performance that C2D CPU's presented itself forth...
  30. Quote:
    In order to have a fire sale to prep for a new chip release you have to have a new chip and have ramped up some sort of stockpile of that chip. AMD is in big trouble.


    It would be an interesting case study to go back and look at historical pricing of older product in months leading up to a new product introduction and check if they drop 20-30-40% 6 months prior.

    A 3800+ ran 300-350 on July 13th, 2006.... today, it is going for 120-100....... I doubt that was because Barcelona was on it's way ;)
    Yes :D , but at the end, I think this will work; they will get more revenue with these prices, at least until Intel follows.
  31. Quote:
    I hear that Mcdonalds is gonna start giving away X2 3600s in their happy meals.


    Yeah, I hear about the too. Happy Meal is about $80.
  32. Quote:
    In my Newegg shopping cart I have logainofhades' exact configuration: a 3600+ Brisbane/Biostar TForce 550 combo, two gigs of G.SKILL DDR2 800 memory and the Freezer 64 Pro, all for less than $350.


    Today the price went down to $335. 8O
  33. True that revenue is not profit, and no doubt distributing AMD's chips at these prices might bring some additional revenue in the short run, but this sure is not in AMD's profit projections, which probably will have a nasty effect over the course of the next few quarters... one that might drop the stock so low that could AMD/ATI end up being bought out?!?
    It seems that serious of a gamble to me...
  34. Quote:
    I'm firmly convinced that at these prices, AMD is the way to go for users in the low to mid-range segment who aren't interested in overclocking. Intel can't even come close to competing with the 3600+ X2 Brisbane at $75, and you can even have a 5200+ X2 for $200--$25 cheaper than the E6400 and better stock performance to boot.

    All contingent on the lack of desire to overclock, of course.


    You said it. This is what AMD used to do. They sold decent processors at slightly cheaper prices.
  35. This is good for consumers, but bad for AMD. They are going to be bleeding. 8O
  36. Quote:
    AMD is purging out the old stuff as new chip is going to replace it, just like the Core 2 Duo.


    Not a likely scenario as AMD has already stated K10 release will be low volume. Additionally, Barcelona is the server processor. The DTPC versions will not hit the market until after Barcelona does. If this is indeed their strategy, then they are reducing prices abnormally early unless K10 is going to be sneak-released sometime in the next few weeks.
  37. My theory is that AMD saw that Intel was aiming for the one DT segment they still ruled, the lower and middle ends. The E4XXX series, cheapening Pentium D's, overall price drops and introducing a $500 quad core really raises and at the same time lowers the bar. The only way they can continue to keep a firm hold on the low end is to basically grab it by the balls by lowering the prices to insanely low levels, not only before Intel, but also two weeks before their own price drops. Its probably done to buffer those that would go to Intel for low priced dual cores.
  38. My theory is that they are sitting on a CRAPLOAD of inventory and need to liquidate it to convert it to cash regardless of the sunk cost of manufacturing it.
  39. Quote:
    My theory is that AMD saw that Intel was aiming for the one DT segment they still ruled, the lower and middle ends. The E4XXX series, cheapening Pentium D's, overall price drops and introducing a $500 quad core really raises and at the same time lowers the bar. The only way they can continue to keep a firm hold on the low end is to basically grab it by the balls by lowering the prices to insanely low levels, not only before Intel, but also two weeks before their own price drops. Its probably done to buffer those that would go to Intel for low priced dual cores.


    Although it pains me to say so, I think Ninja is right on. 8O Intel's low end will be C2D now that Netburst is gone. AMD is most likely realigning their product line in that their mid-end will now be low end and their high end become mid level.

    Where does this leave their current low end..... $60-$90 dollar range.

    AMD no longer will have a high end until they release something new (K10). It does still seem odd that they jumped before Intel actually realigned its products, but I don't have a Masters in Marketing so it that wouldn't be too unusual.

    AMD is so F'd now I think anything they do will seem odd.
  40. My HTPC power supply started making noise today, so I figured I'd order a better one to replace it. I'm getting one of the higher-efficiency Seasonic's, which I've heard good things about.

    Then I figured, crap, I can get an X2 for < CAN$100?!?! I might as well throw that in along with a 690G motherboard. Prices these days are fantastic. Yeah, it would be great to wait for the next round of reductions, but the tax rebate is coming now, and I want a cooler, quieter HTPC. Now I can put my Netburst chip back into a wind-tunnel case to keep temps below melting.

    Note to self: Pentium D's work poorly in HTPCs with quiet fans.
  41. Quote:
    It does still seem odd that they jumped before Intel actually realigned its products, but I don't have a Masters in Marketing so it that wouldn't be too unusual.

    AMD is so F'd now I think anything they do will seem odd.


    Well, their marketing wizards worked on me. I was looking for a computer now, and the X2 has the performance I need. The price being half that of the cheapest C2D kind of made up my mind for me. For those who want to play the waiting game, tomorrow holds better/cheaper things, but I think AMD is trying to get to those customers, like myself, who are out for a bargain. The X2 is the new Semptron.
  42. AMD Athlon 64 FX-62 Windsor 2.8GHz 2 x 1MB = $389.00

    Wow... A 939 X2 4200 I bought nearly a year ago ran for something like $360. Oh well.
  43. Quote:
    Although it pains me to say so, I think Ninja is right on.

    There is a hidden insult in that. Can you tell my why it so pains you?
  44. Quote:
    Do not confuse revenue with profit.... AMD could make 50 billion in revenue, if it costs them 55 billion to make that 50 billion, they still lose.

    Yes, dropping prices will increase their volume of units shipped as the hope is that is spurs sales.... but they will be operating at a loss.... this is not good business.

    OF course this is not good business, but hopefully, this is bad until Barcelona chips come out and fill the upper positions in the price list; then all today's crazy prices will make sense... maybe.
  45. Quote:
    My theory is that they are sitting on a CRAPLOAD of inventory and need to liquidate it to convert it to cash regardless of the sunk cost of manufacturing it.



    Bing, bing, bing... we have a winner.

    They are in cashflow survival mode. They also need to clean up the balance sheet to have a chance at some additional financing.

    Channel stuffing is one of the first things creditors look at.
  46. The prices have dropped again. Check newegg for the prices on the x2 4400 and x2 4000. I'm thinking another week and we could be looking at sub $100 prices, hopefully. :P
  47. AMD price cuts started long time ago. Now you can get their shares for as low as 12 bucks.
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