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Intel Drops Tejas, Xeon To Focus On Dual-Core Chips
PunkerTFC writes "Reuters has an article about Intel dropping the fourth-generation P4 chip (codenamed "Tejas") and the Xeon server processor. Intel says they want to concentrate on their new 'dual-core' technology for desktop and notebook systems. This is essentially putting two processors on one chip, allowing for a doubling of performance with less energy use. The introduction of this technology was not expected for another year and a half. Rival chip maker AMD says they have the capability to produce dual-core chips and will introduce the technology when they "feel there is a market need.""
The other aspect that few people are discussing is the cost to build the chip and the profitability.
The overall trend for desktop computers is "fast enough" and "cheaper" -- In a year or two, you could be looking at $250 Dell machines. Obviously in such a situation, the volume CPU has got to be cheap to build and not require a huge power supply and tons of cooling.
It's ironic that just as AMD has gone for the high-end with their big, complex, and presumably expensive Athlon-64 chips, Intel has jumped on the lowend with the Pentium-M. AMD could win the dicksize war, but Intel might have out-maneuvered them again.
Another possibility is that Intel is trying to kneecap the Pentium in order open up some marketspace for the Itanium in high-end desktops and low-end servers.
Whenever I hear the word 'Innovation', I reach for my pistol.
lamers
Sorry, I'll try to sound more like an AMD Fanboy: AMD IS TEH BEST I SAVED $38 AND GOT THE BIGGORZ FPS LOL. Better?
In fact, they're doing a great thing by pushing new technology, guaranteeing that in a year 64-bit chips will appear at the low-cost, low-end of the market.
I think you are confusing how expensive it is to make the chips versus how expensive it is to buy the chips. Assumption: Intel can make Pentiums cheaper than AMD can make K8s. The P-M is even cheaper to make than the P4. Intel can also demand a much higher profit margin.
If Intel drive the cost of PCs down a couple hundred bucks, AMD will be marooned in the high end workstation market, or be forced to sell at a loss (which they've done before). It would be interesting to see AMD as the high end vendor, but Intel might make the big profits out of the deal.
Whenever I hear the word 'Innovation', I reach for my pistol.
Look man, it's just a theory to explain the day's events. I honestly have no idea how I enraged the AMD Hitler Jugend. I'm basically arguing that AMD is going to own the high end. Is implying that Intel, the worlds largest and most powerful semi firm, is not just going to swirl down the toilet really so controversial to you guys? I guess so, as I'm a trolling astroturfer.
Anyway, read the other post. Two P-Ms are smaller than a single A64. Combine that with Intel's manufacturing superiority and draw your own conclusions.
Whenever I hear the word 'Innovation', I reach for my pistol.