Intel Cuts Chip Prices by up to 53 Percent
babbage1815 writes: "Intel Corp. has cut prices on some of its microprocessors by as much as 53 percent as the world's largest chipmaker's investments in manufacturing over the past two years are starting to pay off." Most of the cuts are at the very high end of the line -- it'll be interesting to see what happens to the prices of the competing AMD offerings.
Who cares about Intel, what's AMD going to do to get me into a new processor? 0%APR and no payments for 90 days? You've got yourself a deal, pal!
What is this is Intel being bought by Walmart?
I mean, sure, AMD's chips are dirt cheap, but sometimes I just want to have a chip that I can be sure to depend on over the years. Certainly, the newest offerings from Intel are the coolest running in the competitive gaming market (not like an AMD, which I could probably cook my breakfast over). I'm sick of my room getting all stuffy and hot just from leaving my Athlon machine on for more than 10 minutes, despite the best efforts of the air conditioning unit and the ceiling fan.
Also, I have a DDR SDRAM motherboard for my Athlon, and I've figured that it'd at least work as a stopgap measure until I could afford something better. Fortunately, now that the final price barrier is gone on the alternative, I can finally get some nice Quake III framerates with an RDRAM-based board. That extra memory bandwidth sure is nice.
So, score one for Intel, and score one for my power bill. My wallet will thank me later.
"I don't know that atheists should be considered citizens, nor should they be considered patriots." - George Bush
Moore's Law predicts that this will happen which is that we will see the doubling of hardware capacity per dollar every 18 months. It looks like Intel has just finally decided to shift down it's prices. I guess the gravy train of overcharging on processers is over for now, until they release another model chip (which is really based on the last one). What will they call this one? Pentium V? Pentium Squared? Pentium Pentium?
A university I know is building a 1000-node Beowulf (yeah, I said the B word) and called both Intel and AMD.
;-)
Intel dispatched a suit and an engineer right away, and was very aggressive on price.
They're still waiting for the AMD guy to show up.
I think Intel is trying to push every resource it can to dominate the market, and they had very good results so far.
AMD: Wake Up!
Hopefully as price drops and more people purchase the pIV chip the power of the chip will become more and more applicable. At first look the pIV may look like a bomb, a dud, a slow chip. But, the chip has great potential which is yet to be realized. As more and more applications are made available which are optimized for the pIV we'll really start to see this chip shine.
scott
Will software companies ever get to do this, they seem to be always charging more for their work... and it's cheaper to copy a CD than to copy a processor...
Then again, that's a two way blade, it's easier for people to pirate their software than to pirate their chips...
...you win!
Palaces, barricades, threats, meet promises
....the minute you buy something the price drops! I have spent a lifetime battling this. AND, if you wait....the technology will change.....arrghghghghg!
.
Ignored Since 1973
Wrong article? The eminem article is next door...
scott
Aren't Intel's prices almost twice as much as AMD's already for mostly equivalent processors? I take this to mean that Intel has decided that AMD is now a veritable threat and as such is no longer pricing like they are the only option. This will take a chunk out of AMD's sales for sure (even if they make similar price cuts) but I suspect that its main purpose will be that knowledgable comsumers will now consider Intel a viable option again.
I stole this Sig
From more coverage at ZDNET:
Sig: What Happened To The Censorware Project (censorware.org)
I'd love to upgrade my CPU, but I've got one of these Slot A things that Intel abandoned so many years ago.
... think I'll just stick with my Celeron 366, it functions well enough...
So really, to upgrade my CPU, I need to get a new motherboard. To get a new motherboard, I probably need to get a new case & power supply, maybe some new RAM... and hell, at that point I might as well get a new computer and plug in some of my old peripherals.
Either way I'm out $500-1000
"Can of worms? The can is open... the worms are everywhere."
The article says that Intel is attributing the price cuts to higher yields, which in turn are due to large investments in its foundries. I'm a little puzzled by this, since this is suggesting that mass-market chip cost actually has something to do with supply, whereas I'd generally assumed that most chip prices were determined by some combination of development cost and demand (i.e., you'll have enough chips; just charge as much as the market will bear and if development is expensive enough you won't have enough competition to bring the price down). The latter is almost certainly true for many server chips. How much is the price of high end mass-market chips actually determined by supply limitations these days?
Intel clearly labels the P4 line with its true clock speed. No false advertising there! Just think that a P4 2.2Ghz machine is 50% faster than an athlon 1.5Ghz, now for the same price! Not only that, I don't have to worry about my heatsink falling off!
I have bought Athlon the past two times I built a computer.
I hate to say it, but both computers suffer from problems such as lock-ups, random reboots, and other compatability issues, especially when playing directx games. I bought the second board (and chip) because the first one did not work. I even bought the board that TomsHardware recommended as the best athlon board at the time (MSI K7-Master S).
The AMD chip is faster, but my Intelly friends have had NONE of the problems I have had when running the very same programs. Therefore, no matter how much more it costs, or how much slower it goes, I will buy Intel in the future, and recommend that my friends do the same.
It is a real shame, because I think the Athlon is a better chip. I just won't trust Athlon boards anymore. If they made a chip that was compatible with an Intel board, I'd buy it.
WWJD? JWRTFA!
Yet at pricewatch the lowest price listed for the same processor is $395. Does this mean the companies selling them below the list price are selling them at a loss or are they getting an even better deal than this?
Okay, I was curious enough to check Pricewatch (www.pricewatch.com) and found about the same story there as I've found for the last few years.
$395 Pentium 4 2.4GHz
$245 Pentium 4 2.2GHz Sock 478
$195 Pentium 4 2.0GHz Sock 478
$173 Pentium 4 1.9GHz Sock 478
$186 Athlon XP 2100
$146 Athlon XP 2000
$122 Athlon XP 1900
$95 Athlon XP 1800
You can get an AMD 1.53GHz for less than $100 now!!
These price cuts by Intel are long overdue by my reckoning, and while it is a step in the right direction, they've still got a ways to go.
Anyone wanting a CPU upgrade at this point anyway would be wise to wait a bit for the 64-bit CPU price war to begin, it's not far away at all, and then all these chips will look slow and clunky.
Palaces, barricades, threats, meet promises
I mean, hey, everytime I turn around, more and more of these powerful devices are costing less and less! I have now seen this happen first hand throughout the majority of my life, from my awesome 1.023mhz 8 bit 48KB ram/16 KB rom IIe, to nowadays rackable machines far more powerful than the fastest dedicated-room supercomputer's of just 15 years ago. And if you wait...the technology will just get better!!! YEAH!
:)
What happened to all the other high performance processors? MIPS, SPARC, PA-RISC? They are/were all attached to high-performance UNIX workstations.
And what happened to those high-performance boxes? Ask the IT dude who's firing up his handbuilt Dual Athlon running Red Hat 7.2.
It's bad enough that the decrepit x86 architecture has lasted this long. With only Intel around, they will extend its lifetime indefinitately, filling our lives with overheating chips that run at twice the Mhz with half the performance...
(-1, Raw and Uncut is the only way to read)
How they arrived at the number 53% is a little bizarre:
Intel cut prices on its Pentium 4 processor for laptop computers by 26 percent to 53 percent
So they just add all the price cuts they've made on the processor together to come up with 53%? What's up with that? It's not like they just dropped it 53%, they dropped it by 26%.
Websurfing done right! StumbleUpon
Not only AMD remains cheaper, but also way faster (on some test as PowRay as much as twice) and with fewer bugs. It looks that Intel is really afraid of losing the market share.
Well, until Intel cuts prices to half of the AMD, I'll keep buying the better chips.
Petrus
ROFL! You made my day, bro.
Apple computer INCREASES prices on iMacs by 53%. Take that Wintel!
The odd thing from the price cuts is that a 2.2 MHz P4 Xeon Prestonia, w/ 512KB L2 cache, now costs $32 less than a 1.4GHz PIII Tualatin w/ 512KB L2 cache. Both of these chips are intended (by Intel) for servers/high end workstations.
If you can't beat them, embrace and extend them.
So now it's hardware capacity *per dollar*? Moore's Law originally had information/silicon doubling every 12-18 months, then it was processor speed, now it has "per dollar" thrown in there. Moore wasn't just a visionary, but a scalable one at that.
Check out the Jargon File entry on this one.
Many sites have been stating that the next price cut won't be until October. I also found it interesting that Intel is selling some of it's stock in AMD.
http://www.kubuntu.org/
This is great news because I like computer chips.
Intel dispatched a suit and an engineer right away
Huh? Do Intel engineers usually go to work naked?
:)
Your questioning of Intel's math abilities intrigued me, so I looked into the new pricing.
;-)
As clearly stated on the new pricing table here, the P4M 1.5GHz dropped 26%, the P4M 1.7Ghz dropped 53%, and other P4Ms dropped between those two percentages. Clearly they were stating the range of percentages of the price drops.
Since you might indeed be math impared yourself, I will show you how they got the 53%:
(Orig. Price - New Price) / New Price * 100 = % Decrease
($508-$241)/$508*100=53%
I hope this cleared up the issue. I don't know which is worse, one who spouts off without looking at the facts or one who just bashes a company to get karma.
-- Find the Truth...
It would happen literally the *day* after I ordered all the parts for my new computer.
This just ruins the feeling I get from paying significantly less for an Athlon...paying just "substantially less" is far less satisfying.
"Don't blame me, I voted for Kodos!"
Since Intel has effectively lowered their marginal costs by increasing capital investment, their optimum quantity will be greater.
In addition since their demand curve (and marginal revenue curve) are downward sloping the new equilibrium quantity comes at a lower price.
Basicaly they made x profit at price P and quantity Q. Because of innovations they can sell more at a lower price to make even higher profits.
In addition their demand curve may have shifted in a bit due to the attractiveness of AMD's offerings.
Here's the AMD pricelist for those of you who are interested.
(Orig. Price - New Price) / New Price * 100 = % Decrease
Stating an erroneous equation for calculating percentage does nothing to I hope this cleared up the issue.
Price changes as any other changes is calculated in relation to the original data point, NOT then new.
How would you calculate a 100% price drop by the way?
Do you have one of those original faulty Intel chips.
Math Bug by any chance?
Help fight continental drift.
The main question that I would have is.. How long will it take for the distributors to sell their stock of "expensive" chips befores cutting there prices too and as a consequence how long will it take for those price reductions to reach us? And it is much shorter for companies like Dell?
Anyone in the industry would know?
I seem to recall some stuff about SSE2 that wasn't too plesant, like bad looking graphics, bad sounding audio... Of course, you could be talking about something else, but P4 already has the majority of the new market, and that's all that matters.
"And we have seen and do testify that the Father sent the Son to be the Savior of the World"
1 John 4:14
I run my studio on AMD processors and have never been happier. My XP 1700 machine has bluescreened once in its life. What OS are you running?
Religion is a gateway psychosis. -- Dave Foley
In other words, you can get an i486-DX2 for $4.24 (a 53% decrease of the previous price of $8)
-- If you try to fail and succeed, which have you done? - Uli's moose
So earlier today I went to look for what I would need to upgrade my system. I need CPU, RAM and a motherboard. AMD is supposed to be the price / performance king right? Comparing an Athlon 1600+ vs a P4 1.6 with roughly compareable (feature wise) MSI motherboards and 256 MB RAM I will save 55 Canadian dollars, about 30 US, with the AMD system. Before this price cut.
So, WTF? For fifty bucks I'll buy the Intel thank you. I'll probably have that in the first 3 month's power bills anyway.
Despite this news, I bet the big PC retailers won't be dropping their prices (or at least not right away). Higher profit margins on high-end systems?
Somewhere in Texas, Michael Dell is touching himself.
I could never buy intel chips takes a lot longer to type intel then amd in a price seach engine. heh =-P
In other news..
Theres a sale at JC Pennies!!!
the point to be made (which no one got) was that in standard applications there are certian ones that are "optimised" for intel chipsets... its almost like when ATI had the driver cheat which gave them better fps on quake3... lots of people thought it was a dirty trick...
P4's consume too much power and generate too much heat. This is the reason why P3's are still used in most rackmount servers. This is why Intel is charging so much for the Tualatin 512KB P3 and so little for the P4 Xeon.
Not sure what this has to do with CPU prices, however it was an interesting read. Can I get some of the weed you're smoking please =)
It's that simple. If you do boneheaded things like use cheap, weak 200W power supplies like Dell uses and put one too many drives in the machine (two Seagate Barracuda IV's in the 1GHz Celeron box in this case), you'll have an unstable, flakey system (unplugging the second drive fixed that). If you don't install the current Service Pack, updates, and drivers (like Dell failed to do), you'll get an unstable Windows system (yes, I know, run Linux, but we don't have the source to everything that'd need porting).
If you carried over your 5-year-old ATX power supply to your new Athlon system just because the plug fit and didn't buy an Athlon-certified power supply (the P4's second power plug forced upgrade spared them from that), you'll have a flakey system. If you bought a VIA chipset board (ASUS's A7V333 is great, just so y'know) and didn't install the current 4in1 driver set, you'll risk a flakey system. If you bought an Intel board because you don't like VIA and didn't check out the nVidia nForce boards (which are driving AMD's invasion of the big OEM market), you're an idiot.
Building Athlons requires slightly more skill than building an Intel-based system. If you can't handle it, go buy a prebuilt system from someone who can.
Plus C3s are dirt cheap.
I can buy a motherboard with:
- Integrated 666 Mhz C3 chip
- Integrated Video, Sound, Ethernet, and AMR that actually works
For just $139 CDN locally. That's like $75 US.
It uses a 486 fan and a smaller than 486 heatsink. Runs equivalent to a celeron-I 700 Mhz. Perfect for the quiet home-entertainment machine, and uses well under 50 watts of power (from what I can tell) so you won't be worrying about leaving it on, or using a fanless power supply.
And, for the first time in a long time, I've actually found it stable (its a PC-Chips product, and my opinions on that are a little *ahem* strong).
If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
>BTW:
That's a mistake (typed in from an email by accident)... didn't mean to insult your english. Time to change my sig anyways...
If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
" So while it may run at 1.53GHZ, that is not the name of the processor. I find it annoying that you just can't call the processor by the correct name"
Yeah, and if you run GNU software on that processor you'd better get used to calling it the GNU/AMD XP 1800.
graspee
What MB are you talking about? I am going to be building a (hopefully) quiet, low-power Linux home router soon and that MB sounds very interesting, as long as it has at least 3 PCI slots so that I can get 3 NICs on it ...
Thanks!
Sorry to respond to my own post, but ... I found it:
8 7c lr.html
... sweet!
http://203.161.230.38/product_img/socket_370/m7
Looks like it's right around $75 US on Pricewatch
A quality 200W power supply is better than a lousy 300W power supply. Dell makes a quality 200W power supply. That is, Dell wrote a specification calling for a quality power supply that some company (probably in Asia) meets.
I have 2 machines: A Dell Dimension 4100 w/ PIII and a 200W power supply and two 7200 IDE drives. My other machine is a newly built Athlon box-- I bought quality RAM (Samsung) and a quality 300W PS (Enermax). It also has 2 7200 drives. Guess which one is more stable?? Yep, the Dell.
Yep, that's the one. :)
:-)
BTW: From what I recall, everything on that board works great in linux.
The video is fine for 2D, but useless for 3D (its a Trident-alike video chipset). Note that the video RAM does steal from physical RAM, so for a router change it to 1MB instead of 8 MB. Can't remember what the sound was, but I think it just uses the standard built-in VIA 686 stuff. The onboard NIC is an RTL8139 10/100 dealy.
Oh, you'll love this, the onboard NIC has a bootrom built into the BIOS (Shift-F10 to enable). I think you can make this work for tftpboot in linux if you want absolute minimum power for your box.
IDE is excellent on the board, however, watch for problems with 2 Gig WD drives. I already had one crazy customer that wouldn't believe me that the BIOS on this board is incompatible with some very old hard drives (it locks up on POST with that specific drive). I saw it not boot with my own eyes.
Use PC133 memory for best results, however I think I got one or two working with PC100.
And, a last note, swap the position of the CMOS clear jumper so its closer to the IDE/Floppy ports. The board is shipped with it on the clear position and the board won't boot until you switch it.
Hope it works out for ya.
If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
I view my computer as 4 systems.
1. The processor, ram and motherboard all get replaced at the same time. This one is the expensive one, and the most pertinent to performance, but it is hard to upgrade one without the other 2.
2. Second system is your storage. Your drives and controller. IDE and SCSI are more or less backward compatible, but the newer drives are sooooo much faster, feature less noise, and seem more reliable. Drives make a large amount of the high performance perception. Adding RAM in linux helps cache drives, adding performance. Windows gains less from this addition.
3. The third system is your graphics, audio and network. Im an app developer, and do little 3d. I listen to mp3's, so I touch these components rarely. I buy the consumer level NVidia, and do well with it.
4. The fourth is your case and powersupply. ATX is standard now, but cases wear out, get scratched, I modify them too much. Im on my fourth case in 2 motherboards, so I average about one a year.
Computers have planned obsolesence, make sure you buy at the right point on the price curve, and you come out ahead. I love performance, so I buy dual processors, but I buy a little slower chips. I find that helps prolong computer life without spending too much. I also multitask constantly, for gamers, it is a differant story. Watch pricewatch, read anandtech, save your pennys.
cide1
-- the computer doesn't want any beer, no matter how much you think it does. NEVER, EVER feed your computer beer.
Turtle Beach Santa Cruz and...
Hercules Fortissimo II
Good, solid gaming cards based on the excellent CS4236 chipset.
If you want an audio card that rocks harder be willing to spend money on something like an Envy24 based chipset (like the Midiman Dio 66). They are the highest fidelity imaginable, but they lack gaming features. If you need gaming on top of ultra-connectivity, the Terratec DMX line was a popular choice but they've got WDM driver model issues.
Black holes are where the Matrix raised SIGFPE
> And yes AMD processors continue to be vastly cheaper and preform better than their Intel counterparts.
If by "better" you mean stability problems and compatibility issues, then I agree.
I dare you to find a PC device that is incompatible with an Intel processor running on an Intel mainboard + BIOS.
If the name's deceptive and disingenuous, which it is, he's doing the right thing. It's not our fault that AMD decided to copy Cyrix PR ratings in an attempt to fool people into thinking their clock speeds were as high as Intel's.
CEE5210S The signal SIGHUP was received.
Intel is being forced to cut costs (while maintaining quality) and also to continue innovating, because if they don't, AMD will 'own' them.
Right now, Intel simply puts out overpriced chips, and is surviving on brand recognition in terms of business, and the fact that average home buyers don't care what's in the magic box as long as it works.
Other than power consumption (which is really only a factor for businesses), Intel's chips have little on AMD's. People whine about stability and such, but I've yet to have a problem with an AMD chip in that department. Most of the unstability comes from crappy motherboards/chipsets, which, yes, also is a problem with Intel processors.
As for getting a good frame rate in Quake3, your comment is pretty stupid. Unless you have an ancient graphics card, you surely get a higher frame rate with your Athlon than the refresh frequency of your monitor. I know I like playing at 1600X1200, and I still get better than 85fps, which is all my monitor can display.
If you've fallen for Intel brainwashing, that's your own problem. Just don't go thinking you're insightful when all you do is repeat their FUD without really taking the time to look at real specs.
Consider the company AMD recently required (Alchemy)... Imagine an XP 2100+, clawhammer, sledgehammer, or what not running say 10 Watts *MAX* and they'd own the technology. Let's see Intel try to keep up with that. Not to mention keep all the trolls who complain about AMD's chips being hot quiet. As it is, with my modest heatsink/fan combo my Athlon XP 1800+ is so cool that with my bare feet next to the open side of the case I don't feel any heat. The power usage and heat issue is such nonsense, unless you didn't bother spending money on a decent tower with a decent power supply. And if you did that, that's your fault, not AMD's.
So why I have not had any problems with my Asus
P5A + AMD K6-III 3Dnow! snce I have it - and that
is more than 3 years now.
That said, I had a verifiably failing and forgetting memory chip for two years, due to which Windows could not be even installed, althoug Linux had never any problems besides weekly core dumps on Netscape.
I do not remember any reboot in 3 years, however I have not problem iwth the 80GB 7200 rpm Maxtor HD that does not get recognized by the BIOS, only by Linux directly.
It has been my maibn machine for more than 3 years, continually hosting between 120 to 250 processes for 2 to 5 users, each running X-windows.
I can recomment Asus and AMD combination to anybody.
Petrus
...timed for the launch of the t-bred (AthlonXP on 13-um process).
Intel 2.66GHz and 2.6GHz P-4s are already on pricewatch (alternatively for 400Mhz and 533Mhz FSB). Only $633! Such a deal!
---
100 MHz Tualatin Pentium IIIs are actually extremely easy to find. You just have to realize that Intel calls them "Celerons" and not "Pentium III"s.
For a 100 MHz slot 1 upgrade kit complete with Tualatin-compatible slocket and Pentium III based 1.2 GHz Celeron CPU, look for the PowerLeap PL-iP3T.
.. which would lower the prices for 802.11b antennas for all of us!
Manufacturing costs are falling, of course, as is the need to recoup development costs, but this has little to do with Intel's prices. It charges whatever it thinks the market will bear (as does AMD).
60W * 1KW/1000W * 24h * 30days/1Month = 43.2 KWh/Month
43.2 KWh/Month * C$0.08/KWh = $3.456/Month
Nice try.
That's significant. Intel's "processor of the future" is only made in the old fab. That's a strong indication that the Itanium is moving to the back burner.
The next generation Itanium is supposed to launch at 1GHz this summer. Meanwhile, Intel has demoed a 5GHz Pentium 4, although that's a year or two from production.
finally found somebody willing to talk about how much they want for the Usparc3 (allsunplus.com):
X6990A Sun UltraSPARC-III 750MHz CPU module with 8MB L2 cache.
Condition RETAIL BOX $3,400.00
X7000A UltraSPARC III 900 MHz processor module with 8MB L2 cache for Sun Blade 1000.
Condition RETAIL BOX $9,500.00
The 750Mhz part will iirc the specX numbers right beat the 800Mhz itanium across the board in terms of performance... If nothing else, there are mature optimizing compilers for the Usparc3 architecture, which is not AFAIK the case yet with the Itanium.
News for Geeks in Austin, TX
Anyone who reads slashdot should know better... never look at PC pricing until at least 6 months after you buy your system
I noticed that the text equation has an error while the numeric one is correct. Correction below:
(Orig. Price - New Price) / Orig. Price * 100 = % Decrease
($508-$241)/$508*100=53%
-- Find the Truth...
Maybe they'll want to go away from the numbers and start doing like MS does
Doh....can't wait for my very own Pentium 2k Pro SP 1...
HeHe!
If you look like your passport photo, you're too ill to travel. - Will Kommen
I would have supported AMD had they made a legitimate effort to educate the public, and called their CPUs, say, Athlon Mark III, Athlon Mark IV, or something. But instead, they chose to take the low, deceptive road of faking clock speeds. You can be in denial about it all you want, but that's what they've done.
CEE5210S The signal SIGHUP was received.
"The University of British Colombia today released a long-term research study claiming that discarded toasters showed signs of sentience. By wiring nearly 3500 toasters in paralell, they were able to burn down the administration building. The net result of the toaster parallelization notably increased the intelligence of the campus as a whole, proving that toasters are indeed the building blocks of future genius."
"We have to go forth and crush every world view that doesn't believe in tolerance and free speech." - David Brin