AMD Launches Tri-core Assault At Intel Dual-core CPUs

Sunnyvale (CA) - AMD's new Phenom X3 8000 series of processors are finally ready for launch: Two new processors carry the massive burden to protect the margins of the higher-end quad-core processors, whose average retail prices have been melting away - while Intel has no problem charging substantially higher prices for its last generation dual-core and quad-core products. But the million dollar question is: Will you prefer a tri-core Phenom over a dual-core Core 2 Duo? (If you would like to skip the tri-core anyway, AMD also has new quad-cores with higher clock speeds for you).

AMD had a great run up until the third quarter of 2006, when Intel rolled out its Core 2 Duo processors and it pretty much everything from new products to business decisions has been working in Intel's favor since then. The quad-core Opteron, Barcelona, as well its desktop version Phenom certainly have been disappointments so far, trailing Intel's offering by what seems to be a distance that is increasing every day. Phenom by itself isn't capable these days to compete with Intel, so AMD has to work with what's in its toolbox.

Compared to the tri-core processors, AMD promises a 20% performance gain at the same clock speed and in "highly threaded applications". As other X4 versions, these new processors are also being promoted as part of the "Spider" platform, which includes the 790FX chipset, which supports up to four graphics processors.

So, what about pricing?

Our initial thought was, well, perhaps these processors are fast enough and convincing enough to push AMD back into the $250 segment that has been dominated by Intel for so long? Perhaps there is even a chance to touch the $500-$600 range, which is currently occupied by only one processor - the Core 2 Quad Q6700? No, AMD will not try to attack Intel in this segment: Instead, the green team opted for aggressive pricing that practically puts a fast quad-core into reach for everyone who wants to spend about $1000 for a desktop PC.

In fact all new 50-series processors are priced right between the current 9500 and 9600 models, which have tray-prices of $209 and $251. AMD charges $209 for the 9550, $215 for the $9650, $215 for the 9750 and $235 for the 9850 - which means that AMD's flagship quad-core processor is priced 14% below Intel's cheapest quad-core processor, the $266 Q6600, at least according to official price lists.

So, are those new tri-cores and those new quad-cores the brilliant move we anticipated it to be? We have mixed feelings about this strategy - it's great for the consumer, but we are wondering what the impact on AMD's business will be. There is no question that AMD is playing a risky game that aims at Intel's market shares. But what about those margins? AMD has been suffering in this department for at least six quarters and this strategy certainly doesn't help to bring profits back up. However, these prices are obviously fantastic news for the consumer: If you are looking for a cheap PC this summer, you will have the choice of dual-core and tri-core systems and we can't wait to find out whether AMD will be able to make a convincing case for its tri-cores - to the point that Intel will be forced to cut its dual-core prices.

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Wolfgang Gruener
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Wolfgang Gruener is an experienced professional in digital strategy and content, specializing in web strategy, content architecture, user experience, and applying AI in content operations within the insurtech industry. His previous roles include Director, Digital Strategy and Content Experience at American Eagle, Managing Editor at TG Daily, and contributing to publications like Tom's Guide and Tom's Hardware.