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Report suggests Intel is preparing for a price war with AMD


steven36

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AMD has had Intel on the back foot now across both the consumer and server market, but the chip giant could be ready to throw money at maintaining market dominance.

 

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Intel is no doubt feeling the heat in both the consumer and server markets, as AMD manages to outmaneuver the chip behemoth at every turn. But Intel could have an ace up its sleeve, in the form of billions of dollars in cash that it can use to fund a price war.

 

According to DigiTimes, Intel has a multi-phase plan in mind to help bolster market dominance. While most of the plan remains unknown, the first phase is reported to revolve around price cuts for OEM partners, which would trickle down the chain and -- hopefully -- result in cheaper laptops and desktops.

 

Intel has vast, yet declining amounts of cash on hand -- just over $12 billion as of September 2019 -- so potentially has a massive war chest. AMD, on the other hand, is not so comfortable, with only $1.2 billion cash on hand during the same period.

 

Intel is also no stranger to price cuts lately. The Core X line has seen significant price cuts, with the latest generation being about half the price of the previous-generation silicon.

 

While Intel still commands a dominant market share -- over 80% for desktop and laptop PCs, and more than 90% of the server market -- AMD is growing fast, especially in the laptop and server markets. Some reports suggest that AMD is on track to hit 10% market share in the server market by the end of 2020.

 

Small, but if Intel is considering a price war, it's clear that the company is worried about hemorrhaging any more market share.

 

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1 hour ago, steven36 said:

 

 

Small, but if Intel is considering a price war, it's clear that the company is worried about hemorrhaging any more market share.

 

 

 

Their is no doubt that Intel is selling their products are premium price. I would love to see Intel reducing their price on their top line products. I have been Intel user since I start using PC. Had an AMD but it did not end well. Actually Intel is more suited to the climate condition here in my country. They perform pretty stable here. But Lets hope intel does not drop their quality. They really reduce their price on their top line CPUs. As there is saying my language:

"Quality cries once, and the cheaper one again and again" (Meaning you have to pay once and bigger price for quality products as compared to cheaper products that comes at low price (but the problem is you have to pay again and again as it won't last long) )

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I  have both kinds of computers  Intel and AMD  ive not turn my AMD PC  on in about 2 years . Both have there  caveats  AMD  drops support on there products on Windows pretty fast  , LTS  support is better on Linux but it took them years to catch up with Intel's service on Linux . that why most servers  are Intel  they had better  support longer for Linux.  But older hardware suffer from side channel attacks . Microsoft   and  Apple  is poor about patching them while Linux is good about patching them. But if they drop the price we all can afford new hardware and PCs that dont suffer .

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