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Posted on : Wednesday 8th July 2020 05:31 PM

Intel Might Counter AMD with $3bn Worth of CPU Price Cuts

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Things inside Intel could be getting a little tense thanks to AMD's major return with its Ryzen chips, which is why the chipmaker is supposedly poised to make more cuts to its processor prices.

That's in line with a leaked slide that comes courtesy of AdoredTV, which explains that Intel will cut the prices of their processor lines rather vastly, so much so that it could come with a $3bn cost.

But such a financial smack around the chops could be one way for Intel to ensure its Core and Xeon processors remain at a price that's competitive with AMD; we doubt the chipmaker would undercut Team Red, but cheaper Core CPUs would surely make the decision to go AMD or Intel more tricky once one balances cost and performance ratios.

As AdoredTV pointed out, Intel has the "financial horsepower" to take this kind of revenue hit, as its long-standing dominance in the chip world means it's not short on cash reserves; while Team Red isn't destitute, it does not have the net income of its main opponent.

In case the rumours are true, we would place a careful bet that the biggest price cuts would be levied at Intel's Xeon data centre CPUs, as that is where the chipmaker is at its most dominant. But the rise of AMD's EPYC Rome 7-nanometre processors gives a new challenge to that arena, and one that Intel possibly can't sit idly by and ignore.

Sure, Intel could cook up some chips that offer substantially more performance than Team Red's rivals, but that's not easy to do; Intel has not precisely had an easy route to the 10nm process node basically. Because of this, in the short-term a price reduction somewhat makes sense.


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