AMD thumped by price war; 'Barcelona' may help

AMD thumped by price war; 'Barcelona' may help

Summary: Can AMD's first quad-core processor--Barcelona--due in mid-2007 give it more ammo against Intel in a pricing war? John Spooner thinks so and argues as much in the ChipLand blog.

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TOPICS: Processors
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Can AMD's first quad-core processor--Barcelona--due in mid-2007 give it more ammo against Intel in a pricing war?

John Spooner thinks so and argues as much in the ChipLand blog. AMD issued a profit warning and has been widely panned by Wall Street. To wit:

"While we estimate AMD desktop and notebook units grew healthy double-digits, we also believe it is likely AMD saw ASP declines. As Intel has been ramping up its competitive dual-core Core 2 Duo, AMD likely saw the most pressure in its own dual-core products," says UBS Equities analyst Uche Orji, who adds that Intel isn't likely to see pricing pressure.

Bottom line: All AMD has to do is get its pricing up. Easier said than done, but the best AMD can do is to hold the fort for a few more months. Once Barcelona enables AMD to raise prices the outlook should get better.

Topic: Processors

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  • Barcelona

    I've been blogging about Barcelona (with Oracle database in mind):

    http://kevinclosson.wordpress.com/2006/12/08/amd-quad-core-barcelona-processor-for-oracle-part-i/

    http://kevinclosson.wordpress.com/2006/12/18/amd-quad-core-barcelona-processor-for-oracle-part-ii/

    http://kevinclosson.wordpress.com/2006/12/28/amd-quad-core-barcelona-processor-for-oracle-part-iii-numa-too/
    kevinclosson
  • How would they get their prices up if they can't beat slowest Core 2 CPU?

    "All AMD has to do is get its pricing up"

    Take a look at this.
    http://www.tomshardware.com/2007/01/11/core-2-duo-overtakes-core-2-extreme/

    This is the lowest end Intel Core 2 running at 3.4 GHz. Even if it was only bumped up to 2.5 GHz it will beat every single dual core AMD processor on the market no matter what the price. How would AMD get their prices up when the knowledgeable buyer knows they can score big with Intel's cheaper processors with some minor speed bumps? The problem is that Intel has leap frogged an entire generation and opened up the biggest gap with AMD in nearly a decade and AMD will need to come out with a new architecture to compete.
    georgeou
    • Did you finish the article?

      If you had, then two sentences later you would have read:
      "Once Barcelona enables AMD to raise prices the outlook should get better."

      Instead, it appears that you got to "All AMD has to do is get its pricing up", and went off on your usual anti-AMD tear.
      Letophoro
      • Anti-AMD?

        It's clear pricing is a big issue and AMD may have to play some serious catchup. AMD was in the lead for a while, but now it's Intel's turn.
        Larry Dignan
      • You are confused.

        Let me ask it straight for you. How will they raise the price of Barcelona when any cheap Intel dual core (and quad core) chip will kick it's butt???
        No_Ax_to_Grind
  • Barcelona - Translated

    A day late and a dollar short.
    No_Ax_to_Grind