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Analyst Predicts Intel Price War, Profit Warning

davemania   on 07 June 2006 - 00:30 · 23 comments & 10754 views

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LONDON — Reading the runes on the World Semiconductor Trade Statistics numbers for April, Bruce Diesen, analyst at Handelsbanken Capital Markets, predicted a profits warning would soon be forthcoming from Intel Corp. where he said processor volumes fell 21 percent and processor prices had fallen 40 percent compared with April 2005.

Diesen said that Intel had stopped trying to make a profit on its current generation of PC processors and had initiated a price war with its rival Advanced Micro Devices Inc. (AMD). The average price of a PC processor in April was less than half what it was in March, Handelsbanken (Stockholm, Sweden) said.

“We expect another profit warning from Intel, guiding Q2 sales to $7.9 billion versus a consensus of $8.4 billion,” Diesen said in a note to clients. “After Intel stuffed the channels with chips in February and March, the floor fell out in April, and [PC processor] sales dropped 52 percent year-on-year,” he added.

“Intel has obviously given up on making any money on their current generation of processors and has started a price war with AMD,” concluded Diesen.

News source: EETimes

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(3 replies) #1 vetvoidunknown on 07 Jun 2006 - 00:33
We shall see... Bring on Conroe!
#1.1 toadeater on 07 Jun 2006 - 01:52
Conroe looks like a success:

http://tomshardware.co.uk/2006/06/05/first...2_uk/page2.html

Now the question is, how much will it cost?
#1.2 kaffra on 07 Jun 2006 - 03:09
#1.3 Octol on 07 Jun 2006 - 19:20
"Now the question is, how much will it cost?"

http://www.dailytech.com/article.aspx?newsid=2547
#2 M2Ys4U on 07 Jun 2006 - 00:37
As long as lower prices don't mean a worse proc, I'm all for it
#3 Audhumla on 07 Jun 2006 - 01:13
It's all music to the consumers' ears.
(1 reply) #4 pyehac on 07 Jun 2006 - 01:56
Cheaper processors means a win-win for everyone. Too bad I just built a computer.
#4.1 kronik on 07 Jun 2006 - 06:06
not quite, Intel may want to put AMD out of buisness so that they can monopolize the market again
#5 djesteban on 07 Jun 2006 - 02:39
for when the quad cores!
#6 acedriver on 07 Jun 2006 - 02:54
just in time for my pc upgrade
#7 g0wg on 07 Jun 2006 - 04:24
Anyone knows when the Conroe is coming? I am in a sort of hurry to upgrade
#8 EnzoFX on 07 Jun 2006 - 05:30
july 23
#9 yert* on 07 Jun 2006 - 05:34
Lower Prices For The Win!
#10 Milk on 07 Jun 2006 - 05:57
Here

The price drop in euros for a pentium D 3.4 GHz
(2 replies) #11 kronik on 07 Jun 2006 - 06:02
this is very bad news for AMD, AMD just can't win a price war with Intel
#11.1 XerXis on 07 Jun 2006 - 06:07
in the long run it's all about price/quality, if amd can make a processor that beats the conroe AMD will win, if not, intel will win
#11.2 kronik on 07 Jun 2006 - 07:49
actually because its a price war its more about who will survive the war, AMD does not have the capacity to sell at a loss as great as Intel's it will put them out of buisness regardless of the quality of their chips, so we may enjoy the prices for a while but once Intel squeezes its competitor out we may never see such prices ever again.
#12 Raa on 07 Jun 2006 - 08:09
Too bad this is too little, too late..

If only it happened 3 years ago, I wouldn't be putting up with stupid "Amd's better than Intel" crap ^_^
#13 ishtar on 07 Jun 2006 - 09:38
Don't be too much in a hurry for CONROE at higher rez amd trounces it . Its great as long as you run a 640*480 Ha Ha Ha.
(1 reply) #14 linsook on 07 Jun 2006 - 10:44
you are clueless....
#14.1 ishtar on 07 Jun 2006 - 19:44
Here read this Dweeb theres nothing earth shattering about these bench marks the gaming numbers in high rez with all eye candy are what should be expected. and looks like amd trounces intel also its using a ati which they don't say what board is being used. http://www.firingsquad.com/hardware/intel_...roe_benchmarks/
#15 callumy on 07 Jun 2006 - 12:22
Lower prices would be nicer, but going too low is ridiculous. I would rather pay a $20 or $30 more if AMD was still in the market, as that way I would always be sure that the (slight) savings and reasonable technology for the price was always there. Look at it this way, if the AMD K8 series had been a failure performance wise, would Intel have decided to make the Pentium M series or even consider not using P4s in desktop PCs - probably not. They could have stunted the performance increases more as well, meaning that the current chips would cost a lot more for what you get, preventing the market for building new technology.

Cal
#16 protias on 07 Jun 2006 - 15:13
im not sure what the power consumption is for conroe, but i do know the am2's are insanely low. a lot of people are looking for cooler processors so they can OC more.

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