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Intel Reacts To AMD Ryzen Apparently Cutting Prices On Core i7 And i5 Processors (hothardware.com)

Less than a week after AMD announced the first line up of Ryzen processors, Intel is apparently fighting back by dropping the price of several of its processors. Rob Williams, writing for HotHardware: So, what we're seeing now are a bunch of Intel processors dropping in price, perhaps as a bit of a preemptive strike against AMD's chips shipping later this week -- though admittedly it's still a bit too early to tell. Over at Amazon, the prices have been slower to fall, but we'd highly recommend that you keep an eye on the following pages, if you are looking for a good deal this week. So far, at Micro Center we've seen the beefy six-core Intel Core i7-6850K (3.60GHz) drop from $700 to $550, and the i7-6800K (3.40GHz) drop down to $360, from $500. Also, some mid-range chips are receiving price cuts as well. Those include the i7-6700K, a 4.0GHz chip dropping from $400 to $260, and the i7-6600K, a 3.50GHz quad-core part dropping from $270 to $180. Even Intel's latest and greatest Kaby Lake-based i7-7700K has experienced a drop, from $380 to $299, with places like Amazon and NewEgg retailing for $349.

16 of 224 comments (clear)

  1. No surprise... by thegreatbob · · Score: 5, Insightful

    But, it's a direct admission that they were basically gouging for want of competition.

    --
    There is no XUL, only WebExtensions...
    1. Re:No surprise... by alvinrod · · Score: 5, Insightful

      Every company does this, and a lot of people (you don't see many people offering to lower their salary) do as well. Hell, you could probably argue that the new prices for both companies are still gouging for want of competition as I expect that both companies will be making healthy profits which suggests there's still room for prices to come down.

      Ultimately though many people still bought Intel processors at those prices because they found them to be worth the money. You still could have bought an AMD processor at that time, so it isn't as though you were forced to buy Intel. However, the Bulldozer architecture was garbage so most people gladly paid the extra money because they wanted the extra performance.

    2. Re:No surprise... by _KiTA_ · · Score: 5, Interesting

      But, it's a direct admission that they were basically gouging for want of competition.

      Absolutely. My big question is... I have a PC Build coming up. I went Intel 5 years ago due to lack of a realistic AMD alternative. How good is AMD Ryzen? Is it merely competitive with Intel, or are we back to the golden days of "Buy Intel for brand name, buy AMD if you want to save a few hundred bucks for something just as good?"

    3. Re:No surprise... by ravenshrike · · Score: 5, Informative

      Intel appears to edge out in single core performance, but by less than 5-10% depending on processor and we still haven't seen single core performance of Ryzen 5 or 3. Ryzen multi-core performance spanks Intel like a red-headed stepchild. Moreover, this is the first iteration of Ryzen, so performance gains probably have farther to go for things like IPC than Intel's current processors. Basically, unless you're planning on waiting for Coffee lake and believe there will be a greater improvement than another 3% IPC gain, Ryzen is as good or better than Intel's offerings especially with the lower TDP.

    4. Re:No surprise... by bill_mcgonigle · · Score: 5, Insightful

      But, it's a direct admission that they were basically gouging for want of competition.

      How much are they gouging? What is the payback period on their R&D? What is the investment in the chip fab to make these things, and how far into the payback period are they now?

      Will these price drops mean that they have to extend the payback period to recoup the costs of the smaller-feature fab? Will that delay the 7nm mass production they've announced for 2020?

      I don't know the answers to these questions. I do know some of the questions to ask. Let's not jump to conclusions without understanding the data.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    5. Re: No surprise... by Ash-Fox · · Score: 4, Insightful

      Define the line where it is not price gorging, please.

      --
      Change is certain; progress is not obligatory.
    6. Re:No surprise... by Fire_Wraith · · Score: 5, Insightful

      The answer isn't to abolish corporations. You're right in that corporations who are left completely unchecked will act like the worst sorts of human beings, but that holds true for humans as well - if you leave them completely unchecked, a lot of people will do utterly horrible things too. That's why we invented things like laws, society, moral codes, etc, and more importantly, we enforce those (or we try to).

      What we need is to have laws and regulations that are applied to corporations, with the purpose of protecting competition/competitive markets, and that are vigorously enforced. I'm talking about Adam Smith style regulations, mind you, not some right-wing fever dream of government drunk with power regulating every last detail (though areas that are natural monopolies are going to need more stringent regulation, by their very nature). Think instead of Teddy Roosevelt style trust-busting, breaking up cartels and fighting for real competition and alternatives.

      And we used to have that, too. The problem is that we grew complacent, and enforcement of those laws has grown lax - mostly because the worst among the corporations have lobbied heavily for it, and their wealthy owners have done the same. Part of the answer is probably to find ways to diminish the influence of money in politics (though I'm not aware of any easy solutions for that), but more realistically, people just need to start paying attention and voting with this in mind.

    7. Re:No surprise... by StikyPad · · Score: 5, Insightful

      I'm not saying I like it, or agree with it, but maximizing profits is different from gouging. Maximizing profits is a legal obligation to shareholders for publicly traded companies such Intel. Gouging is the exploitation of exigent circumstances such as a natural disaster in order to maximize profits. Gouging is unethical, and in some cases illegal, but it's not what Intel was doing.

    8. Re:No surprise... by jareth-0205 · · Score: 3, Informative

      Do you believe that business and merchants existed long before liability protections? If so, then you have evidence that your assertion is false. If not, then history begs to differ.

      But when serious risk was needed, when machinery / railroads / technology developed that might succeed but easily may also fail, it was necessary. One of the reasons that the Industrial Revolution happened in the UK at the time it did was Limited Liability being available there. I'm not say it doesn't have other potentially bad side-effects, but is very obviously necessary for any serious progress to be made.

  2. Much ado about nothing.. for now.. by Anonymous Coward · · Score: 5, Informative

    The centerpiece of this 'article' seems to focus on Microcenter, which ALWAYS has priced drops and sales like this going on.

    Everybody take a deep breath and see where we're at this time next month.

    1. Re:Much ado about nothing.. for now.. by Anonymous Coward · · Score: 3, Informative

      I came here to say this. I've been buying from Micro Center for years, and even worked for them for a summer in the '90s. Their CPU prices have been discounted for quite a long time, and I think it's fantastic that I can I can get a great price from a brick-and-mortar store. And I recommend shopping there to all my friends.

      But to call out their everyday discounted price as a "price drop" is simply bullshit. The Core i5-6600K that is pictured in the article? I priced that for a friend last fall, and it was $180 then. It's $180 now - It didn't drop at all. The Core i7-5820K that I saw mentioned in a similar article? It's $320 now. I paid $300 for one in September, 2015. That doesn't look like a price drop to me either.

      So congrats to Micro Center for finding some idiot publications to post their "news" and getting a nice slashvertisement out of it.

  3. Buy AMD & Support a Healthy CPU Marketplace by supercell · · Score: 5, Insightful

    I suggest everyone buy AMD, until there is a sucessful compeitor to Intel they will continue to price gouge, as evidence by these overpriced chips.

  4. Re:i7 8 Core 16 Thread = $299 by Rockoon · · Score: 3, Insightful

    maybe if they fired their 'diversity officer' (yes, that's a real job at intel) and hired based on skills and need rather than quota by race and gender (and h1b, of course) they'd be able to lower selling costs.

    They may have selected some staff poorly but I think a far more important issue is that their 14nm process advantage technique had led to poor yields that they are still tock tock tocking on. Not saying that Intel made bad choices, but they are screwed because poor yields at 14nm means no yields at 10nm. They know it which is why they've just done massive layoffs and they keep talking up their new "cloud strategy."

    AMD isnt Intels primary competitor. AMD "catching up" is a symptom of Intels real problem, which is that Intel's vertical branding strategy ultimately isnt competitive against the rant-a-fab conglomerates like TSMC which are being driven by the massive sales of ARM processors and accessory chips, and one by one these rent-a-fab's are beating Intel to 10nm. These Ryzen chips are still just on 14nm like Intel and being made by one of these rent-a-fab's. You ain't seen nuthin' yet. What the hell is Intel going to do when all the rent-a-fab's are shipping mostly 10nm product?

    If you have Intel stock.. I highly recommend that you sell now before its too late. Double check your retirement accounts.

    --
    "His name was James Damore."
  5. Re:Personally I will wait by samoanbiscuit · · Score: 3, Informative

    The performance improvements for AMD are mainly due to Global Foundries opening up a 14nm fab.

    This is pretty incorrect. You don't get 52% IPC uplift just from a process node shrink. The Bulldozer family was a double whammy of bad for AMD because it was a bad design choice as well as them being stuck on an older, less power efficient node.

    Had they released Zen chips on their old node sizes, they would have still realized the IPC gain, but would have had to work with lower clocks and higher power consumption. They're now competitive with Intel on performance/watt, that comes from the node shrink, but they're also competitive on performance/clock, which comes from the new architecture which doesn't have such boneheaded decisions baked in like a shared FPU between two Bulldozer "cores"

    AMD hasnt really designed any bonehead chips. Ever. They just havent had access to parity FAB's.

    Bulldozer was AMD's Netburst moment. It failed hard vs Intel on everything except specific multithreaded integer workloads, and even then only beat Intel at much higher power consumption. Every tech reviewer on the planet who knows what they're talking about has shouted it from the rooftops. The Core architecture pulled ahead of AMD's Phenoms and they never recovered till Zen.

  6. Optimisitc by sexconker · · Score: 5, Interesting

    Everything we've seen about Ryzen indicates that it'll deliver amazing performance per dollar.

    We need official street pricing, more benchmarks, and OEM offerings. Most desktops and virtually all laptops are prebuilt. It's up to the OEMs to not take bribes from Intel and build products around Ryzen. With the support we've seen for Polaris in laptops, I think the outlook is good.

    We've got no idea what they've got planned for servers. I hope we see something soon, because it takes much longer for vendors to build a server around a new CPU and socket than a desktop or laptop. Intel's desktop CPU prices are grossly inflated, but their Xeon prices are barbaric. If Ryzen can offer a similar value proposition in the server market as it seems to in the desktop market, then that means I can go with AMD and lose some single-threaded performance, gain multi-threaded performance (as I'll have more cores), and save a bunch of cash. I can use that cash to get more RAM and more/better flash.

    If AMD can get some mindshare back, then Intel is going to be forced to compete or at least slash prices. I do believe that mindshare still starts with the nerds building their own PCs. If AMD can get an average Joe to hear about "Ryzen", then when OEMs do put out their offerings they stand to claw back a lot of marketshare.

    We've also got Vega on the GPU side. Polaris is an amazing performance/$ architecture, but we've seen very little of Vega. Nvidia is poised to release the (almost) full size Pascal chip soon too (presumably as a new Titan or 1080 Ti SKU). What we've seen of Vega has it beating out the 1080 by a moderate margin. Going purely based on die sizes from the full GP100 Pascal chip from the Tesla products, we can forecast that a 1080 Ti / Titan Whatever will blow the existing 1080 out of the water. Vega will either have to be a huge surprise in terms of performance or as great a value as Polaris to claw some desktop GPU marketshare back.

    If the next Xbox and Playstation ever materialize they'll likely stick with AMD for both the GPU and CPU for ease of backwards compatibility, and they will almost certainly be running Ryzen & Vega. AMD lost Nintendo this time around, with Nvidia powering the Switch. Even before it releases there are rumors of a "Pro" or upgraded model running on the Tegra X2 platform instead of the Tegra X1. I doubt we'll see such a thing for at least a full year. (At which point Tegra X3 will be out.) AMD still has at least one unannounced contract for a custom design. It's almost certainly for the Xbox Scorpio, and we'll get the reveal at E3.

    If what we've seen of Ryzen holds true, and if Vega is competitive, AMD is going to have a great 12-18 months.

  7. Re:Personally I will wait by Areyoukiddingme · · Score: 3, Informative

    Does AMD have anything like the dreaded Intel Management Engine hardware Trojan?

    Yes. AMD Platform Security Processor.

    The Platform Security Processor (PSP) is built in on all Family 16h + systems (basically anything post-2013), and controls the main x86 core startup. PSP firmware is cryptographically signed with a strong key similar to the Intel ME. If the PSP firmware is not present, or if the AMD signing key is not present, the x86 cores will not be released from reset, rendering the system inoperable.

    The PSP is an ARM core with TrustZone technology, built onto the main CPU die. As such, it has the ability to hide its own program code, scratch RAM, and any data it may have taken and stored from the lesser-privileged x86 system RAM (kernel encryption keys, login data, browsing history, keystrokes, who knows!).

    Personally I think IME/PSP would be great things to have: if I could set a jumper and burn my own firmware image and signature verification key, then unset the jumper.

    Too bad that's not happening...