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How AMD is dealing with Core 2 Duo
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Endy



Joined: 31 Jul 2003
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PostPosted: Mon Jun 12, 2006 6:16 pm    Post subject: How AMD is dealing with Core 2 Duo Reply with quote

Quote:
Perhaps the most interesting price reductions are on the Athlon 64 X2 dual core line. The memo claims the Athlon 64 X2 3800+ will fall from a processor-in-box (PIB) of $303 to $169. Single core Athlon 64 3800+ processors will fall from $290 all the way to $139 through special promotions



LOL, how's 50% off an A64 X2 sound? - http://www.dailytech.com/article.aspx?newsid=2800
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X-BoT



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PostPosted: Mon Jun 12, 2006 6:27 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

And the price wars begin...
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Jinded



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PostPosted: Mon Jun 12, 2006 7:31 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Good thing I just bought an x2 4200+ without benefitting from these price reductions.
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killer_roach



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PostPosted: Mon Jun 12, 2006 8:10 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

The main idea for these price cuts is to create a huge disincentive for people to buy Conroe... and, considering the cost of Intel motherboards (which is typically quite a bit higher than socket 939 or AM2 boards), it may just be successful, at least for a little while. However, AMD only needs a little while, with K8L coming out in Q2 '07...
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ouch



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PostPosted: Tue Jun 13, 2006 12:15 am    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

so your saying they were makeing twice the profit they should have before?

Yeah, I'll support that company... not.
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killer_roach



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PostPosted: Tue Jun 13, 2006 7:58 am    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Well, with their newer fabs coming online now, their cost per chip to manufacture has probably gone way down... that would be the biggest explanation for the price cuts.
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Endy



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PostPosted: Tue Jun 13, 2006 8:59 am    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Quote:
so your saying they were makeing twice the profit they should have before?

Yeah, I'll support that company... not.


I don't know if you were like... joking or something. I hope you were. It's called capitolism. Welcome to America.

Ultimatley, all it costs to make a microprocessor is a few cents worth of silicon. You know, if you discount little things like billion dollar fabrication facilities, and decades of research. The question is what price will the market tolerate for the finished good, nothing more and nothing less. Ultimatley if you don't overprice chips out the chute then you'll just go out of buisness. So no one wins.

I'm not about to lecture you on economics 101 but if you think Intel, or any other private for profit company in the entire world is doing something... different. You're wrong. Well, no sucessful busineses anyways.





Also if you do some research on the fabrication processes for microprocessors you will understand that high quality chip yields are rare when the fabrication process initially comes on line and it then refined.

Early batches produce 80-90% duds or chips that are so poor they can't even sell them. They learn from the mistakes and then throw them out. This is why the price curve tends to be more exponential than linear when a chip first comes to market, then gradually flattens out as the yield process is refined.

Later batches will be 95% top quality chips and they will underclock some high end chips to cover their middle\low end market. (The Athlon XP series was famous for this - often times the budget Athlon XP's were high grade cores that were simply labeled at a far lower clock rate than they were capable of running at.)

This is why overclockers like to buy very mature last-generation technology. It's dirt cheap and you'll probably get more than you pay for if you do your research right.
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killer_roach



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PostPosted: Tue Jun 13, 2006 9:08 am    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Typically, it costs about $30 to make a CPU, even with yields being factored into consideration. What the real cost is the engineering cost of designing a new core or architecture, which can run into the billions of dollars Smile
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Endy



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PostPosted: Tue Jun 13, 2006 9:18 am    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Quote:
Typically, it costs about $30 to make a CPU


Really, I find it somewhat hard to believe that there is 30$ worth of actual raw material in a CPU. Anyways, it's pretty irrelevant since last time I checked, neither Intel nor AMD was a charity organization. :smirk:
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Discomb



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PostPosted: Tue Jun 13, 2006 2:23 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

I'm totally with Endy here. It's just their way of trying to cope with Intel's agressive price cuts, to try and stay in the game.

And no I don't honestly believe it costs $30 to make a CPU, but what does my opinion matter? :smirk:
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Y2K_MASTER



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PostPosted: Tue Jun 13, 2006 4:56 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

i think kr was reffering to shipping, energy, machine maintanance and all that. I mean, they do have to fit a bajjilion transisters in there, they don't just magically put themselves together. But I also think it doesn't cost anymore than 10$ since this is all being done on a massive scale. Just my 2 cents anyways.
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killer_roach



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PostPosted: Tue Jun 13, 2006 5:00 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Not to mention those silicon wafers aren't cheap. In fact, they're exorbitantly expensive due to the level of quality control needed...
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Spockmeat



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PostPosted: Tue Jun 13, 2006 7:00 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Not to mention, the FAB plants themselves are some of the highest tech centers inth e world with a pricetag of several billion dollars each.
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TheUnknownFactor



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PostPosted: Tue Jun 13, 2006 9:18 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

But what it comes down to is, they wont sell any/many CPU's if intel brings out a new, very cheap cheap chip that outperforms their chip, so what they do is they make it a lot cheaper, hoping to stay in the game long enough to release the K8L (which will still have problems dealing with the Core2).
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killer_roach



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PostPosted: Tue Jun 13, 2006 9:24 pm    Post subject: Re: How AMD is dealing with Core 2 Duo Reply with quote

Some of the recent benchmarks involving Core 2 Duo are somewhat conflicting, but it is entirely possible that K8L could easily catch up to it... after all, after the release of the 3.2 GHz EE part in January, Intel doesn't have any speed increases on the roadmap for the remainder of 1H '07. So basically, from this point on, AMD knows where Intel is, and has to prepare for a roughly 10% performance jump from what Intel has currently showed off. That's by no means impossible, and, with the move to quad core, this should benefit AMD more than Intel again. Neither company is staying still for long, and for all of us, that's a good thing.
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