SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 217.62-1.0%12:51 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: dougSF30 who wrote (189318)3/10/2006 2:11:24 PM
From: eracerRead Replies (3) of 275872
 
Re: Intel exec says no price war.

Actually the Intel exec didn't say that at all. He skirted around most of the pricing issues just by focusing on next generation CPUs which aren't due out for months. He didn't mention what happens to pricing between now and then. Netburst products certainly won't gain in quality after Conroe/Merom/Woodcrest is launched either, yet Intel will still be forced to sell a huge number of Netburst and Yonah CPUs as the next generation processor production ramps up over a period of many months.

And how is a "price war" defined and who gets the blame?

Intel's overall price/performance ratio is far higher than AMD's right now. If Intel lowered prices so their CPU price/performance ratio was equal to AMD's would that be considered a price war? Or would it just be pricing their products for existing market conditions? Such a move would be financially detrimental to both Intel and AMD. If this would be considered a price war who would get the blame? AMD had lower prices first, so would they get the blame for firing the first shot?

When Conroe supposedly launches at 2.67GHz and $529 it will probably be 3-4 speed grades above the fastest Netburst desktop CPU of the time yet be priced the same. While the Intel exec claims that is merely "improving quality" rather than "cutting prices" it will have many of the same effects as a price war. Production of the older generation CPUs will have to be phased out quickly and/or the prices lowered sharply, otherwise someone is going to have a whole lot of CPUs laying around that no one wants to buy.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News