- Joined
- Apr 19, 2003
The following comments are in regards to this article from Overclockers.com, posted 7-18-2006:
One aspect of the current situation in the CPU market which I think Steve has overlooked here is the "cheapness factor":
It will be interesting to watch this metric over the coming months. Currently, S939 A643200+ processors are hovering around the $80 retail mark and PENTIUM 4 506's are hovering around $100. Once Core 2 Duo is available within the wider market place, the price war will likely heat up and the axiom of "high volume, low margin" (relative to current market share and existing production capacities) will come into play.
Companies such as Dell (who are now using AMD processors in some models) and Joe Six-Pack aren't looking for high-level processors, or even middle-of-the-road processors and could care less about overclocking (apologies to the audience). They are looking at the cheap processors. While it's indisputable that AMD stands to loose major market share in the enthusiast market, I'm not so sure about the rest of the world.
It may be a bit premature to start shouting "fire!" in this crowded theater of the mind, as AMD has survived worse stock drops and persevered in the face of Intel's might for the duration of its existence. Although it will loose a relatively small percentage of its market share due to losses in the enthusiast market, it stands a chance to gain a bit elsewhere.
One aspect of the current situation in the CPU market which I think Steve has overlooked here is the "cheapness factor":
Steve said:Intel’s sales are about 7 TIMES that of AMD, in fact Intel’s Net Income is more than AMD’s total sales
It will be interesting to watch this metric over the coming months. Currently, S939 A643200+ processors are hovering around the $80 retail mark and PENTIUM 4 506's are hovering around $100. Once Core 2 Duo is available within the wider market place, the price war will likely heat up and the axiom of "high volume, low margin" (relative to current market share and existing production capacities) will come into play.
Steve said:Intel is releasing these CPU’s at murderous price points, namely the E6600 (2.4 GHz with 4 MB cache) at $316 (which is smoking the FX-62 at $1000 in benchmarks posted all over the web) and, on yeah, they can overclock that by 75%!
Companies such as Dell (who are now using AMD processors in some models) and Joe Six-Pack aren't looking for high-level processors, or even middle-of-the-road processors and could care less about overclocking (apologies to the audience). They are looking at the cheap processors. While it's indisputable that AMD stands to loose major market share in the enthusiast market, I'm not so sure about the rest of the world.
It may be a bit premature to start shouting "fire!" in this crowded theater of the mind, as AMD has survived worse stock drops and persevered in the face of Intel's might for the duration of its existence. Although it will loose a relatively small percentage of its market share due to losses in the enthusiast market, it stands a chance to gain a bit elsewhere.
Last edited: