Can Intel reduce product prices before AMD Ryzen 3000 officially launches?

Going through a few large technology forums in recent times, there are a lot of rumors surrounding Intel being able to prepare a significant discount of some of its high-end CPU models before the Ryzen product launch event. AMD's 3000 officially took place.

This rumor is not unfounded when experts from technology news site DigiTimes analyzed and stated that Intel could cut the price of some of its CPU models by 15% in order to meet efficiency. Compete with AMD's upcoming Ryzen models. And even some sources believe that Intel has informed motherboard manufacturers about this change.

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Can Intel reduce product prices before AMD Ryzen 3000 officially launches?

Overall, Intel's implementation of such a discount strategy is entirely possible. However, considering the world's largest CPU manufacturer's past reactions before rival AMD introduced the Ryzen chip line in 2017, Intel lowered the price of its products to take a competitive advantage. looks a bit unbelievable

Intel has taken a number of important steps to finalize its flagship products since the month before Ryzen was released, including the addition of Hyper-Threading into several suites. handling Pentium series, or increasing the number of cores on some 8th generation CPUs. Similarly, the Skylake product line in the HEDT segment has also increased the number of cores while keeping the price unchanged. In addition, Intel's six-core and eight-core CPUs now also sell for half the price of four to six years ago. These are all decisions that are highly appreciated by the community and bring a competitive advantage to Intel in the market.

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Compare prices between AMD Ryzen 3000 CPUs and Intel equivalent products

However, what Intel has not been able to do during that time is reducing the price for certain products. Instead, the manufacturer simply waited until it introduced a new generation of products and tried to prove that their new CPU models were more pronounced than the older generation while the price was constant sale. This has allowed Chipzilla to be more proactive in adjusting its product prices to take into account competition effectiveness with rival AMD without having to be skeptical of the quality or true value of the product (in In many cases, lowering product prices to compete will also cause companies to lose prestige and value in the eyes of users.

Intel naturally knows that and does not want to reduce product prices directly, because doing so implies that they are under great competitive pressure. Not only that, the fact that Intel's HEDT products have maintained higher selling prices, even when faced with strong performance competition from AMD's Threadripper product line - implies that The company did not face the real threat from rival chips from the beginning. Therefore, if Intel reduces the price, it is like they acknowledge that their product line is not better than the competitor's product and must reduce the price to attract customers.

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Intel HEDT

Bob Swan, CEO of Intel, had previously admitted that his company is expected to face increasingly fierce competition from AMD in the server market and as a result profit margins. The gross margin may be significantly affected, implying that a discount plan may be applied, but will not be the first choice.

Currently, the clear gap in product prices between Intel and AMD comes mainly from the high-end segment. Intel's eight-core CPU models often cost around $ 500, while you'll only have to spend about $ 300 for an equivalent product from AMD - a difference that is not small in price. anyone can see clearly. This disparity is even markedly 'unbelievable' on higher-end product lines. AMD's 16-core CPU usually costs approximately $ 829 on Newegg, while you can only own an Intel Core i9 Skylake X 16 core chip if you spend $ 1,700. Thus, Intel's price reduction of about 15% may not bring much meaning in the high-end segment because the price gap between their chips compared to rivals AMD is still too large.

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AMD Ryzen 3000

Based on Intel's moves to date and the manufacturer's competitive response to Ryzen, we should probably put a bigger question on the rumors that Intel will reduce the price of products to take. competitive advantage, at least for the other 15%. After all, we will still have to see how competitive Ryzen 7nm models are before making more definite judgments.

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