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[WCCF]AMD Bulldozer Launch in September Now Official, Two New 8 Core FX Processors... - Page 24  

post #231 of 244
Quote:
Originally Posted by 996gt2 View Post
If AMD had a CPU on their hands that was competitive with Intel's best, why would they price it at $300 when they could price it at $600, or even $800 and still be less expensive than Intel?
Quote:
Originally Posted by Wikipedia
Each MC firm independently sets the terms of exchange for its product. The firm gives no consideration to what effect its decision may have on competitors. The theory is that any action will have such a negligible effect on the overall market demand that an MC firm can act without fear of prompting heightened competition. In other words each firm feels free to set prices as if it were a monopoly rather than an oligopoly.
AMD is using their right to act like a monopoly

And this isn't the first time either

This is an aggressive plan to get most of the market share they lost before 2006 back
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post #232 of 244
Amd will sell cheaper so they can get there name out there again.
Also they need to sell alot of product not jack up prices and sell less product.
They are gonna try to dominate the market. when that happens then they jack there prices to compete.
post #233 of 244
Quote:
Originally Posted by 996gt2 View Post
Let me just ask you this:

If AMD had a CPU on their hands that was competitive with Intel's best $1000 EE, why would they price it at $300 when they could price it at $600, 800, or $1000?

With regard to your point #1: Nobody knows how Zambezi will perform. There are NO real benchmarks out yet. It could be great, or it could be a total flop like the first Phenom was.
performance has to cost alot???


what sort of thinking is that???
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post #234 of 244
Quote:
Originally Posted by Fr0sty View Post
performance has to cost alot???


what sort of thinking is that???
Uh, basic understanding of how markets work?

The CPU market is not like the video game console market, where manufacturers sell the consoles at less than the manufacturing cost because they know people will buy games that make up for that cost. PS3s are sold for less than manufacturing cost with the knowledge that people HAVE TO buy PS3-specific games with huge profit margins. The printer/ink market works on a similar principle.

Printers and game consoles are loss leader products. CPUs aren't.

If AMD has a CPU that can compete with Intel's best, then they will price it close to Intel's best. It's very simple. AMD is not an omnipotent being that gives out cheap CPUs to everyone. At the heart of it all, they're still a business that exists to maximize profit.
Edited by 996gt2 - 7/24/11 at 7:51pm
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post #235 of 244
Quote:
Originally Posted by 996gt2 View Post
Uh, basic understanding of how markets work?


if so ... with amd's short market shares ... what is more important to them ??


a few sales at high price or higher total market share???


they do have to please shareholders and investors at first ....
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post #236 of 244
Quote:
Originally Posted by Fr0sty View Post
if so ... with amd's short market shares ... what is more important to them ??


a few sales at high price or higher total market share???


they do have to please shareholders and investors at first ....
Yeah, who is to say that selling them cheaper isn't the way to maximize profits for them at this moment in time. We are all flat out guessing on all of this though. This is like Fermi all over again.
post #237 of 244
Quote:
Originally Posted by Strat79 View Post
Yeah, who is to say that selling them cheaper isn't the way to maximize profits for them at this moment in time. We are all flat out guessing on all of this though. This is like Fermi all over again.

i doubt people will try to fry eggs upon release on their cpu hs tho


but i have to agree that everything is speculation ...
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post #238 of 244
Quote:
Originally Posted by Fr0sty View Post
if so ... with amd's short market shares ... what is more important to them ??


a few sales at high price or higher total market share???


they do have to please shareholders and investors at first ....
Quote:
Originally Posted by Fr0sty View Post
i doubt people will try to fry eggs upon release on their cpu hs tho


but i have to agree that everything is speculation ...


I agree, all of this is pure speculation until solid benchmarks for Zambezi come out.

With that said, you have to remember that AMD is in no position to start a price war. Intel is by far the larger company with much more resources at their disposal. For example, if they wanted to, they could introduce a 4.2 GHz Sandy Bridge tomorrow and sell it at the same price as the 2500K, since almost all 2500Ks will reach 4.2 GHz with ease.

There's a famous saying in the business world: "He who lives by price dies by price."
Edited by 996gt2 - 7/24/11 at 7:58pm
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post #239 of 244
dosnt a $300 2600k when overclocked equall to about the same as a $1000 990x???????
in most benches?
    
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post #240 of 244
Quote:
Originally Posted by MaCk-AtTaCk View Post
dosnt a $300 2600k when overclocked equall to about the same as a $1000 990x???????
in most benches?
This is nothing new really. For example, you could buy an Athlon X2 at 2.0 GHz and overclock it to match the performance of an FX-62 for much less.

But whereas the FX-62 didn't have a ton of overclocking headroom beyond 3 GHz, a 990X will overclock to 4 GHz and beyond easily.
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