Intel to slash Pentium D prices by another 60%
Intel schedules to slash prices by another 60%. Notably, the Pentium D 820 dual core CPU will cost $93. Right now, this chip is selling at $175 and very few people want it. The expected price cut will further reduce sales of these Intel chips as people are unwilling to pay for something that will depreciate 60% in a couple of months.
DELL will have a hard time keeping its revenue from falling due to the collapse of Intel's pricing. DELL has already lost its edge over its competitors, as everyone can now get Intel dirt cheap.
As I pointed out here, since AMD's ASP is about $95, Intel needs to reduce its ASP to $80 to win back 1% unit share. But I also pointed out that INTEL will suffer a ($0.40) EPS loss as a result.
I now project 2Q06 GAAP loss for INTEL due to charges associated with impairment on goodwill. I project operating losses for Intel's 3Q06, 4Q06, 1Q07 and beyond.
posted by Sharikou, Ph. D. @ 5/25/2006 04:15:00 PM
13 Comments:
Aren't you worried that this will bring about a fresh price war... At least, if AMD doesn't lower ASP, it will not be able to gain marketshare......
Aren't you worried that this will bring about a fresh price war
Intel is already doing a price war. Go to newegg.com and look at the dual core prices, Intel is dirt cheap now. But few are buying Intel. When consumers see something dropping price, they know it's because the product isn't any good. More price dropping will actually push more people away from Intel. Cheap = bad. Also, CPU is only part of the system cost. A video card may cost more.
This is good news; prices nowadays are really too high.
What's going to happen to Intel is this: Intel is going to reduce prices so much and people are only going to be buying Conroe, that they're going to have low yields on Conroe, too many overstock processors of 8xx, 9xx and Single Core Processors that they're going to run themselves into the ground.
Intel won't have enough money to pay their employees, fabricate their CPU's because Conroe's will have such low yield and be the only CPU's made, and Dell and other manufacturer's will not be able to sell enough PC's with AMD having better performance per watt and having near 100% yields on ALL PLATFORMS.
Nobody is going to be buying anything but Conroe and that will kill Intel, because they won't have enough money to keep having low yields on Conroe and still pay employees, taxes, and fab costs.
I think if Intel thinks investors or businesses are looking at their ESP and products, they'll do the "duck and cover" routine of buying their own shares, and make their ESP look much higher and seem like the company is making money and selling products, when in reality they're doing nothing more than what IDF was: A Cheat.
I have to say Intel management are not bright at all. They don't know how to handle a crisis. I told them they should reduce production and cause price hikes to maintain revenue back in 2005. These idiots won't listen. Instead they are trying to slash price by 60% (meaning slash revenue by 60%) to win back 5% of unit share. Retards. By the time Conroe ramps up, AMD will be out with its super frags, K8L or something else at 65nm...
Why DELL had to go AMD? Because Intel's price cuts! With Intel slashing prices like this, it's impossible for DELL to keep revenue from falling. So DELL has to find another source of revenue -- AMD.
Dell's margins are still pretty high. They'll be able to cut prices without going into the red.
Dell's margins are still pretty high.
DELL is a company with 17x price/book. Unless DELL can keep growing revenue, it will crash.
CPU prices need to come down because the chip processing is way ahead of the software curve. Only area that hardware is still keeping up is gaming. Also dual-core isnt really being taken advantage of yet in software.
www.wesleydjones.com
I think AMD will have to cut prices too if Conroe is released at those prices and outperforms K8.
It might hurt Intel but they'll make sure AMD are hurt too I think.
Falling prices are good news. I advice everyone to buy the computer with the best price/performance value. It doesn't matter, if it's Intel ord AMD...
Intel Scraps the Rebate for large OEM.
http://www.theinquirer.net/?article=31971
Dell will suffers a lot of this. That looks like the first blood between Intel and Dell.
Poor Dell? or poor Intel?
BTW, I think Intel suffer more than AMD as long as Intel can not ramp up Conroe fast enough(Even if people likes Conroe a lot).
why everyone thinks that conroe will stop amds revenues? There will be several people who are waiting for conroe and already dreaming about it.Those are called Intel fanboys. There are several people who will buy AMD even if it would be far far behind.those are called amd fanboys.there are loads of people who were buying intel cpu based pcs even they were inferior to amd based ones.Those people are called-general mass affected by Intels commertials, and have perception, that Intel inside is the best they can have.The numbers of those people decreased over past few years dramatically.
there are loads of people who will bought and will buy amd. those are called general mass#2, who tried amd, they liked it and are ready to buy again the amd based pcs.The number of these people increased dramatically in the past few years.
Even if conroe is faster cpu, people market won't change in a day or month.As someone said it takes time to stop the momentum.
And besides, why amd should decrease their prices? At current prices they are selling like hot cakes, even some average joe thinks they are too high. You get what you pay for.
One more thing.I am looking forward to seeing Intels financial statement at the end of this quarter [[[; will be fun I guess [;
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