The Inquirer reports AMD will cut prices on some desktop CPUs.
I never thought I’d find myself complaining about a price cut, but I’m pretty close to it. What’s surprising is what is being cut: the low-end processors.
I mean, really, people find $70 for a 2.1GHz 65nm dually overpriced?
How much can it help? How much of a price cut can you have when there’s hardly any price left?
At what point do we get this for free? We’ve hit that point, as in “Buy a server board, get the CPU free.”
OK, maybe that one doesn’t seriously count, but if you look at Newegg’s page, they’re willing to give you a little bit extra, an OEM game, a discount on a mobo or hard drive, just to get rid of them.
You know, if you were truly an AMD fan, this should bother you, too.
If you fiddle with the financial statements, you know AMD is paying out about $80 (direct and indirect costs) per processor, and they’re certainly not getting every dollar Newegg is collected, so they’re probably losing money already on these CPUs. This just means they’re going to lose more.
The only thing worse for them is to not make them and not get any revenue at all to pay for some of those fixed capital and other expenses they have to pay whether they make the CPU or not.
What are the prices going to be like three, six months from now?