While AMD's Ryzen 3000 CPU line is nearing its release date, there are rumors that Intel is preparing to sharply reduce its CPU prices. It is unclear whether this is true or just the company's intention.
According to the DigiTimes page, Intel could cut CPU prices by 15% in response to AMD's upcoming Ryzen CPUs and they have informed motherboard manufacturers about the change. It is likely that Intel will take this step, but if you look at the company's moves since AMD introduced Ryzen in 2017, it is still not completely certain.
Intel made a remarkable step to improve its products for months before Ryzen launched. They added Hyper-Threading capabilities to high-end segment processors, and then enhanced the number of cores on 8th generation CPUs.th. Similarly, HEDT processors of Skylake series also increased the number of cores but still kept the same price. Intel's 6 and 8-core CPUs are now half the price of 4-6 years ago.
However, one thing worth noting is that Intel has never really discounted its CPUs like that. Instead, the company often waits until they introduce a new generation of chips and locate new high-end CPUs over older CPUs.
This allows chip manufacturing giants to adjust their old CPU prices to compete with AMD without being seen as racing to keep up with rivals. Intel fears that direct discounts will be a sign that they are competing with AMD.
Compare prices between AMD's Ryzen 3000 chips and Intel's equivalent chips.
There's also the fact that Intel's HEDT chips are significantly higher, even when facing competition from AMD's ThreadRipper performance. If people actively switch from Xeon chips to ThreadRipper chips for their workstations, Intel will be forced to respond immediately.
Meanwhile, Intel's CEO, Bob Swan, had previously admitted that his company is expected to encounter an increase in competition from AMD in the server market, resulting in gross profit margins. affect. This shows that the price reduction may take place, though not what the company wants.
Currently, high-end chips from Intel have significant price differences compared to competitors. Intel's 8-core CPU may be approximately $ 500, while AMD's is only about $ 300. On Newegg, AMD's 16-core CPU price is approximately $ 829, while Intel's Core i9 Skylake X chip costs about $ 1,700. Even if the 15% discount is made, this gap is still very large.
Given the growing competition from AMD, it is clear that Intel will most likely have to reduce its price. It is unclear whether they will do this before or after AMD's Ryzen 3000 launches. It is likely that they will reduce prices of certain CPU models that need to improve their competitiveness instead of cutting prices on a large scale.
It is not clear whether Intel will cut prices to compete with AMD or not. Perhaps we need to wait until we see how competitive the large Ryzen 7nm chips are before we have any new information.
Refer to Extremetech