Are AMD CPU's too cheap?

Quickfingerz

Diamond Member
Jan 18, 2000
3,176
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These chips are far lower priced than a P3. LESS THAN $300 FOR A 1 GHZ K7 CPU!!!

Is this too low? This is insane.
 

Mday

Lifer
Oct 14, 1999
18,647
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i figured it was insane too.

but i realize that amd is working the smp angle here, and more cache to compete with intel =)
 

Punikin

Member
Sep 21, 2000
142
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I think AMD is just trying to hit Intel where it hurts most. Nothing wrong with a little competition.
 

sandorski

No Lifer
Oct 10, 1999
70,841
6,381
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Can you buy them from a jar at the corner store? Then they are not cheap!

One day, within our lifetime, we'll buy computers the way we buy toasters. You buy it and use it until it stops working, throw it out, go buy another one. We won't know or care what's inside and probably won't even know what the true speed is. Someone by then will have come up with a standard measurement that doesn't involve mhz, bus speeds, or whatever. Don't worry though, there will be something to take place our need to build and tweak.
 

Deeko

Lifer
Jun 16, 2000
30,213
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81
Too cheap??? You're obviously not a poor little boy like me who only gets money every other week or so when I have a party to DJ. It's great that it's getting so cheap.
 

goog40

Diamond Member
Mar 16, 2000
4,198
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AS a shareholder of AMD I think their chips are way too f***ing cheap. Come on, a 600 mhz chip that can be OCed to near a gig has to be worth more than $40. It's good that Intel is getting their ass handed to them in the pricing game, but I'd rather see AMD make a little more $$:). Still cheaper than Intel, but they could raise prices a little and know one will know the difference:)

LOL i just checked pricewatch and on their main page with the scrolling specials:
with cpu + fan Pentium III 1GHz Motherboard - $804
with cpu + fan AMD Thunderbird 1GHz Motherboard - $354
AMD Thunderbird 1.2GHz CPU - $495
AMD Thunderbird 1.1GHz CPU - $366

Raise prices dammit! You can get a 1 ghz T-Bird/mobo combo+ a 1.1 ghz T-Bird for less than a 1 ghz p3/mobo combo
 

Trifecta

Senior member
May 27, 2000
385
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AMD made an incredibly smart business decision by selling the chips for what they sold them for.

The Reason:

Intel has a little something called NAME BRAND ASSOCIATION

get a clue

AMD buy undercutting the price of so-called "low-end" chips, i.e., the duron 600, 650, and 700 to a level that Intel simply could not compete with gave them an edge in the Techie junk food, always upgrading their systems buyers. PLUS they were able to market that chip to many of the major computer manufacturers once they saw how fast those chips were selling. There was simply no reason to buy and intel celeron 2 chip once people realized that the AMD chips were performing (and overclocking) so well. On the other hand, the intel chips and their respective chipsets, while slower, were more stable.

Now AMD has a customer base and even more important, AMD has built an association with thier chips as (mostly) stable and extremely fast. The Intel name brand association will take years (or now maybe, several long months) to erode. People, the average consumer that is, believes that intel is the fastest chip around. And if they dont believe that, they at least feel like having that little "Intel inside" sticker made their computer superior in some way.

Kudos to AMD for taking such a bold move by reducing their prices by such a large margin. Any person with half a brain could figure out that just making a better chip would do nothing to threaten intels market share. Heck, making a faster better chip for 10 years in a row probably wouldnt have done anything either. Remeber the dancing silver Pentium people? What a marketing sham. People went running to the computer store after they saw that though. Shoot intel couldve been selling rotten cheese to people after they saw those commercials, and they would have bought it without even thinking about it. But since their clever marketing was combined with superior technology, they basically swamped the market.

THAT is why AMD K6-2s and K6-3s are pretty much non-exsistant except for those who built their own systems.

If I were you, and I owned AMD stock I would be cheering for those prices to keep going down. The lower they go, the more reason people have to dump that p3 550 and upgrade to a Duron 600 oc'd to 850. I will be the first one to say that I am that customer.

When I found out how cheap and overclockable those durons were, I dumped my P2450 and RAN down to the computer store to build up my new duron system. I am sure that I am among the thousands of people that did that. I would have never even considerd going to an Athlon or a pentium 3 700. shoot those P3 700 chips were about 250 dollars at the time.

AMD will have me buying their next set of chips for sure. I am now a loyal user. not because their technology is superior, and especially not because of their marketing (is there even a marketing department at AMD?) but simply because now that I am an AMD owner I am looking for reasons to believe that they ARE better.

That is how business is done. That is how big business get toppled. If AMD had not lowered those prices to that level, the hysteria over those chips would have never happened.
 

goog40

Diamond Member
Mar 16, 2000
4,198
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Yeah I guess the low prices right now will pay off many times down the road, but I want to see some $$ now. Hard to believe if they're actually making any kind of money on the Durons right now(just like Intel+the celeron a couple years ago). What's Intel's next low-end chip going to be? I know Timna died right. AMD will be sittin pretty in a couple years but their stock prices are takin the hit for now.
 

ingenue007

Senior member
Apr 4, 2000
860
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If I were you, and I owned AMD stock I would be cheering for those prices to keep going down. The lower they go, the more reason people have to dump that p3 550 and upgrade to a Duron 600 oc'd to 850. I will be the first one to say that I am that customer.

that's me. dumping my 3 month old celeron for AMD duron 700.
 

Trifecta

Senior member
May 27, 2000
385
0
0
Well, I my personal experience, when a company starts doing the types of things that AMD is doing, and the major competitor is running into walls trying to keep up, it is only a matter of time.

I am also a firm believer in long term stocks. (Probably why I never made any money on any internet start-ups) but, then again, AMD is no internet start up!

You will see your money soon enough, and if their stock is diving, now is the time to invest. Intel is getting killed. They are making nothing but poor business decisions, no one believes in their new motherboard/RAM solutions, and consumers are starting to have a large sense of disdain towards Intel.

I would bet that if Intel doesnt come up with something to compete with AMDs latest series of Chips, they will never get that customer base that they have lost over the past few months.

One thing scares me though. AMD (like I mentioned earlier) has nothing NOTHING for a marketing department. If anyone is reading this and they are involved with AMD marketing PULL YOUR HEAD OUT OF YOU A$$E$!!!

If AMD could only make a few catchy Adversitements either TV or magazine, they would simply drop Intel on their faces.

too bad they are a bunch of freakin morons though...

oh well, at least their chips kick arse :)
 

Mikewarrior2

Diamond Member
Oct 20, 1999
7,132
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I think it is great that amd chips are cheap, but to say that intel is not making money is just plain wrong.

They did not meet their target earnings projections. That does not mean they did not make money. Remember that intel has more production capability than AMD(by a lot), still sell a crapload of retail/oem chips to big computer builders(Compaq, Dell, etc, even the ones that sell some AMD systems still sell Intel based systems).

yes, intel has made mistakes(and bad ones at that). But they are still making money.


Mike
 

fast0

Member
Aug 17, 2000
36
0
0
Intel's good, they provide competition for AMD (hehehe.. didn't it used to be the other way around?:)
I think intel is going to have a major problem on their hands soon, and I think they know it. Intel's projected earnings (?) were down a bit not too long ago, and their stock dropped like $14/share. :p Could this be because of AMD? Who Knows.

The Durons/Athlons simply rule. I upgraded to a 850 @ 1000 with a A7V for about 600 Canadian. (Before the prices went down). Absolutely crazy. An Equiv P3 system would have costed me in the $1K region.

My first CPU/Mobo was a K6-2 350 with a MSI motherboard. It had a ALi chipset, and when I bought a TNT2U, they did NOT get along. I swore at the AMD side of things and got a BX6 w/ Celeron. Now that chipset ruled. I couldn't resist the AMD side and got a A7V later on though. :)
 

Rigoletto

Banned
Aug 6, 2000
1,207
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The price cuts are filtering down to England now. They are amazing. Not just is my 600MHz price 7 months ago get 850 now, but the price differential to higher speeds is much smaller.
Now I only have to figure out what I would DO with this extra speed!
I hope AMD isn't LOSING money on this deal. I doubt it. What they are doing is stealing the limelight from the P4. When that comes out people will all be flocked around the AMD stall and the P4 will be overpriced just sitting forlornly on its own ignored. To compete, Intel will have to lower the price of the P4 to a point which will make the suited creeps cry.
 

KBtrade

Senior member
Jan 21, 2000
612
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0
I have daytraded AMD stock all year and also hold a longtime postition in AMD stock. I am also frustated with AMD's stock price right now, they have a great quarter plus taking market share and the stock does nothing but Intel goes up this past week even after warning a few weeks ago, go figure.:confused: Wall St. and the ANALyst are always about 6 months behind the game, hold onto your AMD stock and you will be nicely rewarded soon enough.

oh btw...I was at a local computer show today, With the new low prices AMD CPU's were flying out the door, just a guess but I would say the AMD's were outselling the Intel's 10-1 today. :D

One last thing, did anyone catch the CNBC interview with Jerry Sanders CEO of AMD the other morning? He did a fantastic job during the interview, too bad CNBC is so biased toward Intel.:frown:
 

Trifecta

Senior member
May 27, 2000
385
0
0
I agree, the P4 would either:

a: outperform the Durons in some sort of unbelievable new way

or,

b: be so cheap (yeah, right) that they might be able to lure people away from their new overclocked duron systems.

I dont think that Intel has any new technologies that we havent all heard of yet. Their Ram and motherboard solutions are a total joke.

and fat chance that they will ever lower their prices. That is what happens when you are a huge company with a massive infrastructure to support.


- - "to say that intel isnt making money is just plain wrong..." - - -

Agreed, but its not just about making money. That is the short term reward. Intel is now going to have to change their entire outlook on where they are headed with their CPU technology. They are now in the position of having to play catchup. Someone, Somewhere in that company did not do thier job. They have to many people to support, too much money spent in advertising and not enough high quality products at an affordable price.

If they keep going the way they are, Intel might end up as the next Macintosh. Think about it: They are restricting the options for compatible hardware...doesnt this sound familiar?



 

goog40

Diamond Member
Mar 16, 2000
4,198
1
0
My great idea for AMD marketing: since they're chimpzilla, they should make the AMD chimp and give one away with each AMD system purchase from the major OEMs. They can be just like Gateway, when you think of Gateway you think that ugly ass box, thats brand recognition baby!

edit: anyone know why when I click on the link for this thread from the cpu forums page, it takes me back to http://forums.anandtech.com
but when I copy and paste the same address and hit enter it works fine?
 

Stealth1024

Platinum Member
Aug 9, 2000
2,266
0
0
AMD will make their money with the high end chips just as Intel did. The market share they are gaining with their cheap Thunderbird and Duron processors is more valuable at the moment than high profits.

In addition, they are redefining the specifications of a low and high end computer. Intel, on the other hand, is content to sit back, relax, and leave us stuck in the mud purchasing 800MHz processors for the same price as 1000MHz AMD processors.

I can remember when everyone made the jump from the Pentium MMX to the Pentium II. Cries of "We don't need this much power" and "Way too expensive for me" where heard. Months later when Pentium II prices fell to reasonable levels, our definition of a value PC instantly changed. And why did it change? It changed, and will continue to change, because faster computers with heavy profit margins that only certain people can afford and everyone else dreams about were being sold as well!
 

Stealth1024

Platinum Member
Aug 9, 2000
2,266
0
0
Here is an interesting twist...

Intel is keeping their prices high because they don't want people buying certain chips!

Intel is having a very difficult time mass producing high end Pentium III's and it shows. Not only have they issued recalls, but have suffered from shortages.

Intel is banking on the P4. Hopefully the people at AMD have another trick up their sleeve.
 

Deeko

Lifer
Jun 16, 2000
30,213
12
81
Stealth1024, thats exactly why AMD doesn't advertize. They are selling all they make. If they advertised more, they might start to have supply problems. It's amazing that they have fewer fabs than intel, yet they have many more high end chips.