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Why is AM2 so cheap?

T

TheArabian

Senior member
Why are AM2 processors so cheap? like can get a 3800+ for like half the price of a socket 939...

is there a drastic loss in performance? can someone please clarify the situation.

Thanks
 
It's an old fashioned price war. Prices should bottom out by Sept. I remember gas price wars in Texas and Okla in the late 60's and early 70's. 20 cent gas was a great deal then. Why did amd choose to lower prices on specific cpus? You'll have to ask them. Am2 performs about the same as socket 939. But many people like myself won't change memory anytime soon. I'm hoping for a pc3200 conroe board.
 
Originally posted by: Gamer X
Just wait till July 24 and you'll be able to get a cheap AM2 X2.
Click to expand...

That's what I'm waiting for. Until then, I'm just plugging in a Orleans 3000+.
 
Originally posted by: o1die
It's an old fashioned price war. Prices should bottom out by Sept. I remember gas price wars in Texas and Okla in the late 60's and early 70's. 20 cent gas was a great deal then. Why did amd choose to lower prices on specific cpus? You'll have to ask them. Am2 performs about the same as socket 939. But many people like myself won't change memory anytime soon. I'm hoping for a pc3200 conroe board.
Click to expand...

there is a ddr conroe board... it has ddr, ddr2, pcie and agp. try search for asrock, thats who made the board
 
I doubt the 3800 he is refering to is the dual core that he is comparing the price to. The price cuts havent happened yet as far as I know.
 
Originally posted by: Questar
Found it:

"a company spokesperson said that AMD's pricing strategy "remains unchanged" and that it remains committed to pricing its prodcuts "according to the value they deliver."

http://arstechnica.com/news.ars/post/20060612-7034.html
Click to expand...

That sounds right...
Let's see, the 162mm2 Pentium D 920 costs more to manufacture than the 142mm2 X2 3800+, but it sells for close to half the price. So it MUST be based on value delivered...
 
Originally posted by: Baked
AMD's trying to sell as many AM2s as they can before Conroe comes out.
Click to expand...

I don't think AMD really cares about Conroe at this point...
It's the Netburst chips that have the huge discounts (based on value given as Questar points out).
 
Originally posted by: Viditor
Originally posted by: Questar
Found it:

"a company spokesperson said that AMD's pricing strategy "remains unchanged" and that it remains committed to pricing its prodcuts "according to the value they deliver."

http://arstechnica.com/news.ars/post/20060612-7034.html
Click to expand...

That sounds right...
Let's see, the 162mm2 Pentium D 920 costs more to manufacture than the 142mm2 X2 3800+, but it sells for close to half the price. So it MUST be based on value delivered...
Click to expand...


1. You don't know how much it costs Intel to produce a 920.

2. That was AMD speaking, not Intel.
 
Originally posted by: Aluvus
Originally posted by: Viditor
I don't think AMD really cares about Conroe at this point...
Click to expand...

Then I think you severely underestimate them.
Click to expand...

It's not the design (which is excellent), it's the volume. Since 90% of the desktop chips will be Netburst still, that's what AMD is focused on.
 
Originally posted by: Questar
Originally posted by: Viditor
Originally posted by: Questar
Found it:

"a company spokesperson said that AMD's pricing strategy "remains unchanged" and that it remains committed to pricing its prodcuts "according to the value they deliver."

http://arstechnica.com/news.ars/post/20060612-7034.html
Click to expand...

That sounds right...
Let's see, the 162mm2 Pentium D 920 costs more to manufacture than the 142mm2 X2 3800+, but it sells for close to half the price. So it MUST be based on value delivered...
Click to expand...


1. You don't know how much it costs Intel to produce a 920.

2. That was AMD speaking, not Intel.
Click to expand...

1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.
2. Yes...and? Did you think that Intel plays by a different set of rules?
 
Originally posted by: Viditor
It's not the design (which is excellent), it's the volume. Since 90% of the desktop chips will be Netburst still, that's what AMD is focused on.
Click to expand...

I would say they are focused on pressing their advantage, yes, but largely with an eye on Core. AMD is in a good position on the desktop, server, and workstation fronts right now, but I'm sure they are very much aware that that cannot last forever.

In other words, they are focused on pushing back Netburst now so that they have a better position against Core later. If Intel plays it right, Core could be a Really Big Deal, which would be a Very Bad Thing for AMD, and both camps know this.

This is all prologue.
 
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.
Click to expand...

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.
Click to expand...

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?
 
Originally posted by: Markfw900
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.
Click to expand...

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.
Click to expand...

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?
Click to expand...

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be.

I just don't trust anything regarding the semiconductor industry unless it's back up by where the information is obtained and a link to. The "Trust me it's true" doesn't jive with me regardless of who it maybe and for me perosnally I do this with everyone. I won't give preferential tratement.

 
AM2 seems like a good buy because AMD wants it to look that way. If you already have an older platform (such as s939), you're still going to have to buy a new motherbaord AND ram because of the switch to DDR2. In reality you'd be spending more on AM2 overall vs. spending more for a similar s939 CPU only upgrade (as opposed to CPU/MOBO/RAM upgrade). For people who need to buy all 3 no matter what, then AM2 is going to be the more enticing choice - which is what AMD wants at this current moment. When Conroe hits, the general thought is that they'll drastically reduce prices because their current price/performance simply can't compete.
 
Originally posted by: coldpower27
Originally posted by: Markfw900
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.
Click to expand...

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.
Click to expand...

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?
Click to expand...

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be.

I just don't trust anything regarding the semiconductor industry unless it's back up by where the information is obtained and a link to. The "Trust me it's true" doesn't jive with me regardless of who it maybe and for me perosnally I do this with everyone. I won't give preferential tratement.
Click to expand...

Bigger chip = more expensive. It's not a hard concept to grasp.
 
Originally posted by: coldpower27
Originally posted by: Markfw900
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.
Click to expand...

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.
Click to expand...

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?
Click to expand...

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be.

I just don't trust anything regarding the semiconductor industry unless it's back up by where the information is obtained and a link to. The "Trust me it's true" doesn't jive with me regardless of who it maybe and for me perosnally I do this with everyone. I won't give preferential tratement.
Click to expand...

It's a bigger die and therefore costs more the manufacture. Die space is very precious... Even intel's 6 fabs doesn't mean they can produce it for much less just that they can produce much more.
 
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