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Why are AMD cpus prices being slashed to heavily?

H

Hayateazekura

Junior Member
So in the last couple of weeks I have been seeing AMD cpu's prices being slashed heavily. Up to the Threadripper platform. Why is that?

Yeah coffeelake is out but its out of stock everywhere. Yeah zen+ plus is coming out next year but that doesn't seem it. Now I can see them slashing prices do to a rumored 8 core mainstream cpu coming out next year.
You would think AMD would want to make as much money as possible during the holidays

Are they scares of coffeelake but then that wouldn't effect the Threadripper platform. I don't know, seems weird
over the reaction AMD is doing in the moment.
 
Hayateazekura said:
So in the last couple of weeks I have been seeing AMD cpu's prices being slashed heavily. Up to the Threadripper platform. Why is that?

Yeah coffeelake is out but its out of stock everywhere. Yeah zen+ plus is coming out next year but that doesn't seem it. Now I can see them slashing prices do to a rumored 8 core mainstream cpu coming out next year.
You would think AMD would want to make as much money as possible during the holidays

Are they scares of coffeelake but then that wouldn't effect the Threadripper platform. I don't know, seems weird
over the reaction AMD is doing in the moment.
Click to expand...

Design wins are hugely important when you have a nice roadmap - the more design wins the more revenues = $$$ - AMD is executing well and when the APU's / Servers start rolling out they are going to make a bundle of cash
 
Yakk said:
That's just how AMD usually operates, they move their prices down a lot faster than most corps milking their costumer base. Looks like some people are so used to it they're worried when their not milked?
Click to expand...

AMD isn’t a charity, it is a business. They only drop prices when external forces dictate it, not because they’re nice guys. Frankly, I thought they underpriced the 1800 and 1700 Ryzens on release. At this stage, I suspect they’re dropping prices in an attempt to push people to buy before CFL becomes very easy to get.

For the sake of transparency, I own a Ryzen 1700x, a Ryzen 1500x, and an i7-8700k, all purchased since May.
 
IndyColtsFan said:
AMD isn’t a charity, it is a business. They only drop prices when external forces dictate it, not because they’re nice guys. Frankly, I thought they underpriced the 1800 and 1700 Ryzens on release. At this stage, I suspect they’re dropping prices in an attempt to push people to buy before CFL becomes very easy to get.

For the sake of transparency, I own a Ryzen 1700x, a Ryzen 1500x, and an i7-8700k, all purchased since May.
Click to expand...

Yup agree, never said they were a charity, just that dropping prices quickly is their standard business practice.
 
Hayateazekura said:
So in the last couple of weeks I have been seeing AMD cpu's prices being slashed heavily. Up to the Threadripper platform. Why is that?

Yeah coffeelake is out but its out of stock everywhere. Yeah zen+ plus is coming out next year but that doesn't seem it. Now I can see them slashing prices do to a rumored 8 core mainstream cpu coming out next year.
You would think AMD would want to make as much money as possible during the holidays

Are they scares of coffeelake but then that wouldn't effect the Threadripper platform. I don't know, seems weird
over the reaction AMD is doing in the moment.
Click to expand...
No, you mix two news items and get the result. First is clearing inventory. Second is taping out 7nm this quarter. So, that mixed with the holiday season to move volume, you have enough reason without invoking that they are scared.
 
You need to differentiate between official price cuts and retailer promotions.

The "price cuts" you have been seeing are by and large retailer promotions attempting to match Microcenter's deals.
 
Yakk said:
Yup agree, never said they were a charity, just that dropping prices quickly is their standard business practice.
Click to expand...

You may not have said they are a charity, but you did seem to say that lowering prices quickly after launch is just how AMD operates.

In fact they are generally second place in terms of performance, so they have to lower prices in order to compete. In areas where they lead, such as with crypto currency miners, their prices stay high.

It's simple supply and demand.
 
nitromullet said:
You may not have said they are a charity, but you did seem to say that lowering prices quickly after launch is just how AMD operates.

In fact they are generally second place in terms of performance, so they have to lower prices in order to compete. In areas where they lead, such as with crypto currency miners, their prices stay high.

It's simple supply and demand.
Click to expand...

Yup.
 
Yakk said:
That's just how AMD usually operates, they move their prices down a lot faster than most corps milking their costumer base. Looks like some people are so used to it they're worried when their not milked?
Click to expand...
lolololololol

Yeah!!! AMD is like; Forget maximizing profit! Let's just hook everyone up!"
 
mohit9206 said:
You guys are super lucky. Here amd cpu still selling at msrp.
Click to expand...

That's because there is no official price cut from AMD. Retailer pricing != AMD pricing.

The thread title is like asking "Why is Intel raising prices on the 8700K?". This would also be wrong, as neither AMD or Intel are responsible for the observed pricing. Those are set by the retailers.
 
It's like nvidia. Joe Consumer usually buys nvidia over AMD if the price and performance is the same, so AMD is forced to offer more performance at a lower price. The mining bubble has thrown that off for GPUs, but for CPUs the intel brand is much stronger and people are used to a decade of AMD only offering low-end "value" CPUs.
 
No AMD cuts here otherwise I'd be building an AMD system instead of a Coffee Lake system. I priced both including motherboards a few weeks ago, and AMD wasn't compelling enough to purchase despite being a budget brand as the total cost was close to the same.
 
Simple: Prices fluctuate with changing market conditions.

The initial Ryzen rush is long gone, combined with Coffee Lake getting the enthusiast attention, leads to lower prices to move inventory.

Notice that Vega prices fell the same week as the official GTX 1070 Ti release.
 
It's obviously why.

Let's say that in February 2017, the yield of "excellent" Summit Ridge die is 65%.

Other dies either have some internal defects or cannot be clocked very high without significantly increasing the voltage.

Now, let's say that in November 2017, the yield of "excellent" Summit Ridge die is 85%.

AMD can lower the prices to make the products even more competitive while maintaining profit margins.
 
Amd is running at their max capacity. Because as the small company they can do so without prices colapsing.
Add they have the wsa to fulfill.
Intel have more profit via margins by keeping production lower if demand is not there instead of lowering prices. There wouldnt be so many more consumers by them lowering prices.
 
it might be due to wanting to move inventory if AMD is expecting the Zen refresh to go as planned in Q1 2018
 
Udgnim said:
it might be due to wanting to move inventory if AMD is expecting the Zen refresh to go as planned in Q1 2018
Click to expand...
One can say if zen plus is comming already february november and december is the time to move the stuff. You dont want old zen when the new stuff will look much better on gaming benchmark due to fmax new turbo and perhaps new memory controller. Besides cfl starts to come in the usual huge numbers january. And the apu is incomming. Its about last call for zen the next month and a half.

Bye bye and thanx.

Its been the most interesting year for the last 10 years at least. So much new stuff. Compettition is nice.
 
krumme, do you think that we'll get some actual MSRP reductions on existing Ryzen 3,5,7 CPUs? Or just reseller discounts, with hidden rebates from AMD to clear stock?

I know that Zen+ / Zen2 are going to be great, but still, if there's value to be had by snagging some existing Ryzen CPUs at a discount, then why not?
 
FIVR said:
They are gaining market share from intel, even though coffee lake is getting better and better supplies. So I guess their price cuts are working

https://m.youtube.com/watch?v=eGBROsZP1x8&feature=youtu.be
Click to expand...
Similar to the GTX 1070ti trying to flood the market before Vega has enough supply to satisfy demand,
AMD is pushing Ryzen hard before coffeelake is able to satisfy demand.

AMD needs the marketshare to start getting an installed user base. It's a smart move from them to do the price cut around now.

krumme said:
One can say if zen plus is comming already february november and december is the time to move the stuff. You dont want old zen when the new stuff will look much better on gaming benchmark due to fmax new turbo and perhaps new memory controller. Besides cfl starts to come in the usual huge numbers january. And the apu is incomming. Its about last call for zen the next month and a half.

Bye bye and thanx.

Its been the most interesting year for the last 10 years at least. So much new stuff. Compettition is nice.
Click to expand...
Personally, I think if you don't need a CPU wait for the next Zen. AMD is on a roll, and this was just the FIRST Zen. Imo, it's still worth getting even if Zen 2 is a dud so that's not aworth worrying about next year. THe potential upside though is massive with Zen 2.

Great for AMD to be in a spot where the next year they only have upside potential.
 
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