Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Intel is reducing server chip pricing in attempt to stem the AMD tide

tomshardware.com

Post reply on HN
Print view View original

11–20 of 344 posts

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#11

Post by rcthompson »

scandinavian wrote: post #7
tomalpha wrote: post #3

Earlier quoted context omitted.

Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0] [0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...

> Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. Shouldn't you replace AMD with TSMC in that sentence, unless you meant design instead of chips? AMD doesn't manufacture chips.

By "AMD's chips", they clearly meant chips marketed and sold under AMD's brand. If you're trying to make the point that TSMC deserves the real credit for competing with Intel, then just say that.

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#13

Post by tomalpha »

scandinavian wrote: post #7
tomalpha wrote: post #3

Earlier quoted context omitted.

Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0] [0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...

> Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. Shouldn't you replace AMD with TSMC in that sentence, unless you meant design instead of chips? AMD doesn't manufacture chips.

It's an interesting point, but I buy from Intel or AMD - I don't buy from TSMC. Intel and AMD supply me the product and set the pricing.

As a simple consumer, I perhaps don't know about their upstream suppliers (granted the HN crowd will absolutely know...).

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#14

Post by scandinavian »

rcthompson wrote: post #11
scandinavian wrote: post #7

Earlier quoted context omitted.

> Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. Shouldn't you replace AMD with TSMC in that sentence, unless you meant design instead of chips? AMD doesn't manufacture chips.

By "AMD's chips", they clearly meant chips marketed and sold under AMD's brand. If you're trying to make the point that TSMC deserves the real credit for competing with Intel, then just say that.

You don't think it's important to make the distinction between chip design and manufacturing?

Intel has clearly failed with regards to manufacturing new nodes, but is the chip design really that bad when they could compete for a long time with a large node disadvantage?

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#15

Post by joakleaf »

jychang wrote: post #8
danpalmer wrote: post #2

This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.

Intel has $24.8 billion in cash. https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on... Intel dropping their prices and thus revenue temporarily should not affect their ability to compete at all. They're not THAT badly mismanaged to the point they're out of cash.

... and dropping prices doesn't necessarily meaning dropping revenue or even profit.

Intel's per chip profit may drop, but if they sell more because of lower prices, they may actually increase their overall profit.

It is really hard to tell without knowing Intel's current profit margin and the increase in number of chips sold from this maneuver (if any).

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#16

Post by pbalau »

danpalmer wrote: post #9
tomalpha wrote: post #3

Earlier quoted context omitted.

Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0] [0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...

TSMC are spending about that every year for the next 3 years on production improvements. Chip fabrication is so expensive to develop, I'm concern that $24bn is nowhere near enough to build a 5nm process.

Intel has 24bn available in cash. One could assume Intel also has $FOO x 24bn available in loaning power.

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#17

Post by Retric »

tomalpha wrote: post #13
scandinavian wrote: post #7

Earlier quoted context omitted.

> Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. Shouldn't you replace AMD with TSMC in that sentence, unless you meant design instead of chips? AMD doesn't manufacture chips.

It's an interesting point, but I buy from Intel or AMD - I don't buy from TSMC. Intel and AMD supply me the product and set the pricing. As a simple consumer, I perhaps don't know about their upstream suppliers (granted the HN crowd will absolutely know...).

If you own a cellphone or console your likely buying from TSMC. If you’re buying AMD then you are buying TSMC.

Intel is unusual in that they still manufacture their high end chips in house, cutting edge fabs are simply mind boggling expensive. So basically everyone else outsources and if your outsourcing high end chips you might as well buy from the bets if you can.

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#18

Post by libertine »

a012 wrote: post #10

Isn't this always their strategy? But now they just hand out the discount code more easily to everyone.

It's one of the tools in intel tool-belt, they have used shadier tools in the past - aggressive sales force, manipulating benchmarks - which was probably the cause of AMD fall.

Re: Intel is reducing server chip pricing in attempt to stem the AMD tide

#19

Post by starfallg »

jychang wrote: post #8
danpalmer wrote: post #2

This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.

Intel has $24.8 billion in cash. https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on... Intel dropping their prices and thus revenue temporarily should not affect their ability to compete at all. They're not THAT badly mismanaged to the point they're out of cash.

Intel drank the management consultant kool-aid like many large pharmaceuticals corps, relying more on financial engineering than their research pipeline to compete. The flip side is that they have lots of money to splash around. Companies like Pfizer for example.
Post reply on HN