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Analyst predicts Intel price war, profit warning
2CPU ^ | 2006-06-05 18:25:06 | Hooz

Posted on 06/05/2006 9:53:20 PM PDT by Ernest_at_the_Beach

EETimes has reported that an Intel price war has been planned. Armed with a bandoleer full of Dual Core Smithfield and Presler based chips for ammunition. The company has taken another road to challenge their rival, AMD.

“We expect another profit warning from Intel, guiding Q2 sales to $7.9 billion versus a consensus of $8.4 billion,” Diesen said in a note to clients. “After Intel stuffed the channels with chips in February and March, the floor fell out in April, and [PC processor] sales dropped 52 percent year-on-year,” he added.Also stating;

"Intel has obviously given up on making any money on their current generation of processors and has started a price war with AMD,” concluded Diesen.While Intel has seen a slide of profits this quarter as opposed to the same quarter of the previous year of this time. The price war will serve positive to the consumer who seeks out a Dual Core processor such as,Pentium-D 805 at an atomic bomb low of $93. A challenge that, AMD has yet respond to with their Dual Core product line.

More here.




Printed from 2CPU.com (http://www.2cpu.com/story.php?id=4145)


TOPICS: Business/Economy; Computers/Internet; Music/Entertainment; TV/Movies
KEYWORDS: amd; computers; intel; microprocesors

1 posted on 06/05/2006 9:53:25 PM PDT by Ernest_at_the_Beach
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To: ShadowAce; Salo; NormsRevenge; Marine_Uncle; Grampa Dave; SierraWasp; RadioAstronomer

Watch for the deals coming soon!

Duo Cores for everyone!!!


2 posted on 06/05/2006 9:55:05 PM PDT by Ernest_at_the_Beach (History is soon Forgotten,)
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To: Ernest_at_the_Beach

If I had a picture of someone quietly cheering from inside a foxhole... I'd post it.

The best thing to happen to Intel was for AMD to show up on the market. PPC chips from the IBM, Apple, Motorola alliance stopped being a factor in pushing performance limits when Motorola and IBM lost interest in pushing the envelope for personal computing.

Competition is good.


3 posted on 06/05/2006 10:28:02 PM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: Ernest_at_the_Beach
I remember the days when AMD was struggling to just get into the Microprocessor game. They have come a long way that is for sure. I don't even follow the new lines of CPU anymore.
So many innovative designs have come forth it is hard to keep up with ones competitor, and hard to find a nitch market.
4 posted on 06/06/2006 4:38:25 AM PDT by Marine_Uncle (Honor must be earned)
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To: rdb3; chance33_98; Calvinist_Dark_Lord; Bush2000; PenguinWry; GodGunsandGuts; CyberCowboy777; ...

5 posted on 06/06/2006 5:53:43 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: Marine_Uncle
The biggest breakthrough for AMD was when they bought out NexGen and used NexGen's processor core technology to create the original Athlon CPU in 1999. Thanks to the fact that the Athlon CPU core processes CPU instructions far more efficiently at the same clock speed than its Intel competition, that's why AMD could get away with running lower CPU clock speeds but still offer excellent performance. Of course, AMD's decision to put the memory management chip on the CPU die with their 64-bit CPU's is also the reason why they got their CPU's to really go fast.
6 posted on 06/06/2006 6:23:39 AM PDT by RayChuang88
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To: Ernest_at_the_Beach

AMD no longer needs to compete on price. Certain apps, namely games, simply run faster on AMD. That and Recent AMD chips run cooler. And, of course, Intel had to swallow AMDs implementation of 64 bit instructions.

My understanding, and I am not an expert, is that the Opteron scales better when you have many CPUs. I've seen a server actually for sale with 16 dual core Opterons.

Intel looks to be ahead in performance for a few months, but I doubt if it will last to the end of the year.


7 posted on 06/06/2006 6:35:28 AM PDT by js1138 (Well I say there are some things we don't want to know! Important things!")
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To: Ernest_at_the_Beach

I been watchin that stock price slip lower and lower on a steady decline!!! It just won't decline fast enough to let me make money on quicky "Put" options!!!


8 posted on 06/06/2006 7:33:02 AM PDT by SierraWasp ((2006)Arnold? Or NO Arnold? (2008)Gore? Or NO Gore? NO DEAL!!! (on either one))
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To: js1138
My understanding, and I am not an expert, is that the Opteron scales better when you have many CPUs

That's true. In a Xeon system all processors get memory through the northbridge, while the Opterons get it directly. Also, the communications between the Opterons is faster and more efficient, since each has a HyperTransport link to its memory and two to other processors.

The downside of the memory design is that AMD has to release entirely new chips in order to take advantage of newer memory technology, so they'll usually be behind Intel in the memory offerings. Intel's dual-core and cache design is also superior, so individual processors may be more efficient, although they'll always starve for memory in places where the Opteron won't.

9 posted on 06/06/2006 7:52:25 AM PDT by antiRepublicrat
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To: antiRepublicrat

So a wise purchaser will evaluate chips based on the application rather than price alone, or horsepower.


10 posted on 06/06/2006 8:11:30 AM PDT by js1138 (Well I say there are some things we don't want to know! Important things!")
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To: antiRepublicrat

How do you arrive at the conclusion that the Intel dual core design is superior?


11 posted on 06/06/2006 8:20:25 AM PDT by Ernest_at_the_Beach (History is soon Forgotten,)
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To: Ernest_at_the_Beach

Frankly, I think things are looking pretty grim for both the financial AND the political scenarios today with the market down another triple didgets already again today!!! Bummer...


12 posted on 06/06/2006 8:54:14 AM PDT by SierraWasp ((2006)Arnold? Or NO Arnold? (2008)Gore? Or NO Gore? NO DEAL!!! (on either one))
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To: Ernest_at_the_Beach
How do you arrive at the conclusion that the Intel dual core design is superior?

Mainly the cache it uses. It's L1 cache is 8-way associative vs. AMD's 2-way, and it's twice as fast. It's L2 cache is bigger and dynamically shared between the cores (each core can have more or less data for itself as it needs, and they can both work on the same cached data) and is over twice as fast. It also has eight powerful prefetchers.

Tests so far show that cutting the on-die memory controller's advantage way down. AMD is countering in the future by tacking on a shared L3 cache, but I'm not too sure about that idea.

As usual, we are the winners. But I think Intel will have the performance/power crown until next year.

13 posted on 06/06/2006 10:07:10 AM PDT by antiRepublicrat
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To: Ernest_at_the_Beach

OK everyone,

SOMEONplease find me the $95 dollar Pentium D 805 Dual Core Processor. $95 dollars!

I can't find it for less than $120.


14 posted on 06/06/2006 2:49:36 PM PDT by JerseyHighlander
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To: JerseyHighlander

The point of the article is that bargains are coming!


15 posted on 06/06/2006 3:25:24 PM PDT by Ernest_at_the_Beach (History is soon Forgotten,)
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To: RayChuang88

Yea. AMD's Athlon CPU sure gave Intel a run for the money as you described. During that time period I was working with a small computer VAR. And we told customers they could save money buy purchasing computers from us with AMD's CPUs, and not worry in most cases if any that they would not get equal performance. Quite frankly I forgot about the NexGen deal. Thanks.


16 posted on 06/06/2006 4:47:27 PM PDT by Marine_Uncle (Honor must be earned)
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To: JerseyHighlander
I can get you down to $107.89, at newegg.com, for an Open Box: Intel Pentium D 805 Smithfield 533MHz FSB 2 x 1MB L2 Cache LGA 775 Dual Core,EM64T Processor - OEM. For an unopened OEM package, I too can't get below $120.
17 posted on 06/06/2006 5:17:10 PM PDT by ThePythonicCow (We are but Seekers of Truth, not the Source.)
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