3 ms·

AMD is beating Intel on performance, but with recent price cuts, Intel is offering VERY good value right now and also much better availability. If you don't nee

by Drew_ 6y ago

AMD is beating Intel on performance, but with recent price cuts, Intel is offering VERY good value right now and also much better availability. If you don't need the absolute best, Intel is the way to go easily.

totalZero 6y ago
That is the most succinct and business-minded summary in the entire thread. Relatedly, I am surprised by the commenters who believe that the trends in Intel pricing were somehow involuntary. The outperformance of AMD CPUs was clear even prior to the pandemic, and I recall talk at that time about Intel using price pressure to resist AMD's expansion of market share and gross margins. Now that silicon supply is getting tight, market share is all the more relevant because whatever demand AMD can't meet gets caught by Intel. It's not all about benchmarks (although IMO Intel is hanging in there with Rocket Lake). You actually have to get a customer to buy your product in order to generate revenue.
- neogodless 6y ago
  > somehow involuntary Given the choice, Intel would rather resist AMD's expansion of market share and gross margins without lowering their prices.
  - totalZero 6y ago
    An involuntary price change would be one in which Intel is following a price set by AMD. Think about price takers and price makers. In this case Intel is undercutting AMD and setting a low price that forces AMD to keep its own pricing lower. This is disadvantageous for AMD because its ability to satisfy spikes in demand is capped; additional orders for unexpected demand have to flow through the TSMC pipeline, which is also used by many other companies. In contrast, Intel can meet demand because it owns its production processes; Intel churns out more product and absorbs the unexpected demand. Per-unit margin matters less for Intel because its share of the unexpected/marginal demand is high.
rglullis 6y ago
Thank you for that. This downvoting is making me feel like I kicked some sacred cow.

by Drew_ 6y ago

totalZero 6y ago

That is the most succinct and business-minded summary in the entire thread. Relatedly, I am surprised by the commenters who believe that the trends in Intel pricing were somehow involuntary. The outperformance of AMD CPUs was clear even prior to the pandemic, and I recall talk at that time about Intel using price pressure to resist AMD's expansion of market share and gross margins. Now that silicon supply is getting tight, market share is all the more relevant because whatever demand AMD can't meet gets caught by Intel. It's not all about benchmarks (although IMO Intel is hanging in there with Rocket Lake). You actually have to get a customer to buy your product in order to generate revenue.

neogodless 6y ago
> somehow involuntary Given the choice, Intel would rather resist AMD's expansion of market share and gross margins without lowering their prices.
- totalZero 6y ago
  An involuntary price change would be one in which Intel is following a price set by AMD. Think about price takers and price makers. In this case Intel is undercutting AMD and setting a low price that forces AMD to keep its own pricing lower. This is disadvantageous for AMD because its ability to satisfy spikes in demand is capped; additional orders for unexpected demand have to flow through the TSMC pipeline, which is also used by many other companies. In contrast, Intel can meet demand because it owns its production processes; Intel churns out more product and absorbs the unexpected demand. Per-unit margin matters less for Intel because its share of the unexpected/marginal demand is high.

rglullis 6y ago

Thank you for that. This downvoting is making me feel like I kicked some sacred cow.