Intel slashing P4 prices by 63% !

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KenAF

Senior member
Jan 6, 2002
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According to this new article over at the Inquirer, Intel is making some big changes in its processor pricing. According to the article, in a few weeks, Intel will introduce its Pentium 4 2.80GHz processor at $508, the 2.6/2.66 Pentium 4s will cost $401, and the 2.53GHz processor will cost $243.

That's a price drop of 63% ($637->$243)!

Then, on September 1st, Intel will drop the price of the 2.4GHz/533 Pentium 4 to $193, the 2.26/2.2GHz part $193, the 2GHz chip $163, the 1.9GHz chip $163, the 1.8GHz Pentium 4 will then be $143.

The article implies that the P4 3.06GHz--which apparently will be the first P4 to feature Hyperthreading--will come October 27. The article also mentions that Springdale, Intel's dual channel DDR chipset for consumer desktops, was moved up to 2Q 2002, with its availability to coincide with the release of a 3.2GHz P4 in the 2Q (likely April?). It also says the next-generation "Prescott" P4 will debut in the second half of 2003 (June/July?) at 3.2GHz, which seems odd...also seems odd considering that the Springdale chipset was supposed to be for Prescott.

This all means that come September, $799 PCs from Dell and Gateway will use 2.4GHz and 2.53GHz processors instead of the 1.8GHz and 2.0GHz models they are using now. What is Intel trying to do by reducing the cost of faster PCs? Hurt AMD? Or re-invigorate the economy? Or just sell a few processors in a bad economy?
 
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ahsia

Golden Member
Oct 3, 2000
1,031
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Originally posted by: Adul
they are just trying to sell more. AMD going to hurt until the hammer comes out.
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I think AMD will have a hard time regaining the market share it once had. From the period of the PIII 750 to the P4 1.6A, there was a good year or so where Intel had processors that were expensive, not very overclockable, and not as fast as what AMD offered. Now, Intel has processors that are highly overclockable, which means you get more value for the money, and performs very well. It has made a huge comeback with the Northwoods, and AMD is going to have a hard time getting back to where it was, even with the hammer.
 
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vash

Platinum Member
Feb 13, 2001
2,510
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Intel knows AMD is hurting and they are pouncing. As long as there is a battle between the two, we all win for prices, features, etc. AMD users should be happy with price drops for Intel systems -- their DDR prices are going down and AMD will slash CPU prices.

vash
 
dullard

dullard

Elite Member
May 21, 2001
25,655
4,172
126
What is Intel trying to do by reducing the cost of faster PCs? Hurt AMD? Or re-invigorate the economy? Or just sell a few processors in a bad economy?
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This question comes every 3 months. Just do a simple search back in time and you will see people asking if Intel is trying to hurt AMD. Intel has always cut prices like this - even before AMD was a significant threat. Intel overcharges for their top end processor. Thus when a new top-end processor appears, the previous one plummets down to the next price level. AMD on the otherhand often has only a $18-$25 difference between most speed grades. When a chip drops to the next pricing level, it is barely noticible. If AMD had chips that sold for $600+ you would also see large regular price cuts.

These boards are filled with this same topic every quarter: Intel slashing prices by 40%, 50%, 60%! Guess what? For the last year and a half the top P4 has remained around $630. Thus if you want the top processor the price didn't change at all. Don't think of it as a price cut, but instead of the chips just sliding a slot or two down the ladder - each ladder rung still has the same price tag. (Note I realize the one exception last July when the 1.7 GHz P4 was cut a couple weeks before the 1.8 GHz debuted. I think this was just a timing delay with the 1.8 though and not a significant change in Intel's pricing strategy.)

When the 2.66 and 2.8 GHz models come out at roughly $630 who in their right mind will buy the 2.53 GHz if Intel didn't drop its price? Intel wants to end mass manufacturing of the 1.6 GHz-1.9 GHz models. How can they do that without cutting the prices of the 2.0 GHz chips? Intel doesn't have much choice if it wants to produce faster chips and to end the slower ones.

 
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Rectalfier

Golden Member
Nov 21, 1999
1,589
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Yummy. I hope AMD can take the heat. Luckily for AMD they will be fully on 0.13 microns soon, which will help their earnings, or should i say losses.
 
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Dug

Diamond Member
Jun 6, 2000
3,469
6
81
I guess I'll wait on getting that 2.26 for $241

A 2.53Ghz for $243 sounds like it will hit the sweet spot with its 19x multiplier.
 
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mfavin

Member
Apr 20, 2001
163
0
0
You can take another 10-15% off there for OEM prices too. People were saying I was crazy the P4 2.26 would be ~$150 (real street price) by the end of August. Seems I saw right.


The 2.5 Ghz is the sweet spot for me. That puppy should hit 2.7 without breaking a sweet.
 
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luckyquark

Junior Member
Jul 21, 2002
1
0
0
When I got my AMD k6 233 several years ago, AMD had no where near the amount of the market they do now. Both companies seem to go through phases, although I've seen a steady increase in AMD's marketshare.
 
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peang

Senior member
Apr 6, 2000
269
0
0
OK... now I'm ready to say AMD is in trouble!
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I hope their not :)
because if AMD is in trouble and force them to close their business, it will very bad for us. I'm sure Intel will push their price up alot like before. :)

I like if they are just keep compete to statisfy our need without one of them in trouble :)
 
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Ime

Diamond Member
May 3, 2001
3,661
0
76
We definitely want AMD to stay in business and in the CPU market especially. Competition is a good thing.

I personally use all AMD at home myself... however when my fall upgrade comes along I may just get Intel this time around. We'll see!
 
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Nemesis77

Diamond Member
Jun 21, 2001
7,329
0
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Originally posted by: peang
because if AMD is in trouble and force them to close their business, it will very bad for us.
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That is so not going to happen. Before that happens, AMD will be bought by some other company. Via, NVIDIA and IBM come to mind. But AMD's situation aint that bad yet. If they need cash, they can sell the flash-business. They will be hurting 'till Hammer ships (unless Barton is alot better than Throughbred. It does seem to be better).
 
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boi

Golden Member
Apr 12, 2002
1,695
0
0
wow, only $243. Thats freakin cheap. I might even get one for my mom =0
 
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