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Intel Corporation Message Board

  • ltisteve@verizon.net ltisteve Dec 17, 2011 2:59 PM Flag

    Intel Processor Price Strategy

    The question has been brought up on this board a few times as to why hasn't Sandy Bridge come down in price? Intel was once famous for offering processors at some astronomical numbers then dropping the prices on a constant basis. A $600 processor that comes out today will be $350 in six months. That doesn't seem to be the case anymore, and I have some speculation as to why.

    #1 Much larger market. Back in the 80's a lot of the high end processors were sold for commercial and scientific purposes. The people who needed it were will to pay premium prices for it. After six months those who needed it desperately had it and the price drops would inspire people who were on the fence to pull the tiger. Today with 400 million PC's being sold a year they are going to consumers and commercial applications that aren't necessarily power users.

    #2. Shorter life cycles: With the Tic Toc development cycles the next generation of processors is less than 18 months. Unlike the old days where the same processors kept on the price list year after year, these processors don't stick around forever.

    #3. The underground price list: I bought an Intel processor recently, and though it came out in 2010 it's no longer on the price list. My thoughts were that it was sitting on a shelf at Ingram Micro for the past year and Intel cut a deal with some online vendor to blow it out. Nope, I looked up the production code, turns out that it was less than two months old.

    Apple still has some computers with old Core 2 Duos and many other processors that are no longer on the price list like the Core i7 920 are still being sold online. If a vendor needs a deal on a processor I'm sure that these off list processors are the goto bargain processors.

    #4. Lower prices: Instead of selling their processors at a premium to the early adapters Intel seems to be selling processors at a good value. The Core i7 2600K and 2700K are prime examples. They easily could sell for a couple hundred dollars more and still be worth it. But at their current price they sell well, and Intel must be making it's ROI on the initial R&D back very quickly due to the high volume of the current market.

    I think we're now in an era of one price list to last an entire initial life cycle. When Ivy Bridge comes out and replaces Sandy Bridge Processors you'll see them fall off the price list. But with that Gen 3 processor you can bet that Intel will be selling a lot of Gen 2 Sandy Bridge processors and some Gen 1 original core series processors. By that time the ROI on the R&D will be more than paid off on the Gen 1 processors and they can use them to fight off AMD on the ultra low end.

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    • 32nm Cedar Mill uses the PowerVR SGX545 core which is in the Tegra 3 gpu/ARM Mali-400 class. Are you saying that Medfield will use the ARM Mali-400 instead ? I consider that more than a bit unlikely.
      -----

      Medfield will use PowerVR. The rumor of Intel using a Mali core is related to the T658.

    • Imagination Technolgies ...

      which is partly owned by both Intel and Apple (about 20% each IIRC).

    • "Isn't PowerVR an ARM processor? "

      Imagination Tech

    • ltisteve@verizon.net ltisteve Dec 19, 2011 12:06 PM Flag

      Isn't PowerVR an ARM processor?

    • "I think Nvidia was really onto something with Tegra 3 and the baby processor. I think you may see that in future Intel designs. In the ARM world, to me that was the most important development of the year."

      INtel has let us know they are experimenting with varying the voltage/clock...

      Maybe we'll see something more in line with the S4...??

      "Intel doesn't seem to want to have Atom eat too much of their marketshare for the Core line of processors."

      Yes, they restrict the screen size an ATOM can go with...
      They also keep the cache memory size low so it can't compete with the core line...

      "There are too many factors to declare a winner in the ARM/Intel battle."

      They both will win BIG !!!!

      "

    • 'I think Nvidia was really onto something with Tegra 3 and the baby processor. I think you may see that in future Intel designs. In the ARM world, to me that was the most important development of the year.'

      It was kind of forced on them because they chose the TSMC 40G process rather than the TSMC 40LP process to implement the Tegra 2 main cores from which Tegra 3 is derived although it is still a neat idea which ARM are doing themselves with the A15/A7 big.little chip combinations.


      'Intel Atom processors are going to be using ARM GPU's to drive them. I think a lot of people really underestimate the benefit of GPU's in smartphones and tablets. I can tell you that Intel picked a good partner for the 32nm Atom processor. It should be a fairly impressive little CPU/GPU combination.'

      32nm Cedar Mill uses the PowerVR SGX545 core which is in the Tegra 3 gpu/ARM Mali-400 class. Are you saying that Medfield will use the ARM Mali-400 instead ? I consider that more than a bit unlikely.

    • ltisteve@verizon.net ltisteve Dec 19, 2011 11:11 AM Flag

      Thanks Marsivian I like your posts as well and GetanId61, though it was kinda fun watching you debate the merits of Nvida on this board. I've owned Intel, AMD, Nvidia, ATI and even Cyrix processors/graphics cards in the past. Each has had it's merits. I have more or less stuck with my favorites over the years. Intel for CPU's, Nvidia for graphics, Asus Deluxe Motherboards for performance based PC's and Intel motherboards for everything else.

      I think Nvidia was really onto something with Tegra 3 and the baby processor. I think you may see that in future Intel designs. In the ARM world, to me that was the most important development of the year.

      Intel Atom processors are going to be using ARM GPU's to drive them. I think a lot of people really underestimate the benefit of GPU's in smartphones and tablets. I can tell you that Intel picked a good partner for the 32nm Atom processor. It should be a fairly impressive little CPU/GPU combination.

      Yes, Intel doesn't seem to want to have Atom eat too much of their marketshare for the Core line of processors. I also agree people who buy tablets are buying them for different reasons than buying laptops. I took the family over to Gamestop yesterday and they had a small section of tablets. If Microsoft really wants Windows 8/ Windows Phone 7.5 to take off they should think about moving some of the Xbox games over to these devices. For decades gamers have pushed the graphics card industry, why not do the same thing for tablets and phones?

      There are too many factors to declare a winner in the ARM/Intel battle. There are some developments Intel lets out early like Tri Gate and other things that they just tend to spring on the market. For as large of a company Intel is, it can still surprise you with how fast it can move when it needs to. That being said, I don't believe that Intel will move heaven and earth for Atom processors. They don't want it to eat into their Core sales. So they are going to have to walk the tightrope of keeping it relevant and not too powerful.

    • "AMD's 28nm gpus are on time while Nvidia's are MIA and composition unknown."

      Let's see what they offer...
      Past launches for AMD have always been the same...
      Launch their flagship for bragging rights...
      but NO ONE can get for months... only their smaller parts

      "Anybody with a half decent brain could do it better as the products basically sell themselves"

      YOu're just venting...

      "Huang's ego is a company liability."

      It takes ego to take on INtel, Qualcomm, etc...

      "How much money did he spend on Tegras and yet he still couldn't guarantee that arguably the best performing discrete gpu provider would provide the best performing mobile gpu"

      As for mobile gpus, NVidia claims the attach rate to Sandy Bridge has been the best they've had...
      ONly to be surpassed by attach rate to IvyBridge.
      Maybe they included desktops in that ??

    • 'Well... what's new ??'

      AMD's 28nm gpus are on time while Nvidia's are MIA and composition unknown.

      'It would NOT be easy to be CEO of NVidia'

      Anybody with a half decent brain could do it better as the products basically sell themselves, Huang's ego is a company liability. How much money did he spend on Tegras and yet he still couldn't guarantee that arguably the best performing discrete gpu provider would provide the best performing mobile gpu ! WTF !

    • "Its gpu range is under siege from both AMD gpus"

      Well... what's new ??
      Quadro just had a record Q...

      "and x86 cpu/gpu SoCs"

      against the integrated chipset business which no longer exists...

      "They are led by a babbling idiot "

      Couldn't disagree more !!!!
      It would NOT be easy to be CEO of NVidia...

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