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[THG]97% Of CPU Market Consists Of Sub-$200 Processors - Page 4

post #31 of 37
Quote:
Originally Posted by Melcar View Post
Yeah. I doubt I will ever buy a $150+ CPU anymore. Get a cheap chip, overclock the crap out of it, and call it a day.
Exactly my point of view +rep
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post #32 of 37
Quote:
Originally Posted by Crazy9000 View Post
People go on the internet, hear that intel pwns amd, then go out and buy pentium D's .
like my A+ Certification teacher...she fails... Made horrible systems even when I told her that even the dual core AMD procs are better than the Pentium D's...I hate ignorance.
post #33 of 37
I don't like that article--all it says is 97% of the cpu's used by consumers cost less than $200--big deal. It doesn't say anything about numbers of AMD vs. Intel--we're just inferring which has a stronger hold based on our personal opinion. The fact that AMD has all their processor line costing below $200 doesn't mean that they sell better. People are going to buy (a) what they're used to (and as someone brought up--people love to read the "intel inside" sticker on their computers for some reason, and feel happier with an intel CPU even when an AMD cpu might perform better--sometimes out of ignorance) or (b) what performs the best for the money. Given two current CPU's of the same cost, one being an intel dual core, and the other being an AMD dual core, I'd go for the intel 'cause they have the performance edge right now. I wonder how much of the consumer base knows and understands that--most of us on OCN do, but for the most part, I'd say that whatever Dell or HP, or Gateway, or Apple (etc.) use is what the average consumer is going to use (obviously)--so we should be more interested in what the major computer manufacturers are using if we want to really understand which company has a stronger hold on consumers. I'd say that more commonly than in the past, computers are being built with AMD processors even given the slight performance gap between current AMD vs. Intel processors--probably because in absolute terms, you can build a cheaper AMD system than an Intel system (AMD offers a $50 dual core 4000+ X2 whereas the cheapest dual-core intel cpu is $60 for the Celeron E1200). I'd be interested in a study showing the percent of AMD-based systems vs. Intel-based systems--say for new systems build over the last half year.

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post #34 of 37
Quote:
Originally Posted by Crazy9000 View Post
People go on the internet, hear that intel pwns amd, then go out and buy pentium D's .
I hate you
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post #35 of 37
I don't believe this for a second. Why, well for the obvious reason is that the data comes from Fudzilla. However, I have another reason that break it down a little better.

The notebook market is rapidly approaching the desktop market and is expected to surpass it soon. If you look at the current notebook processors from Intel, they are ALL above $200 for 1k OEM sales. Now Lenovo and Apple combined have about 12.5% of the notebook market, or about 6% of the overall processor market (non-servers). These 2 companies sell ONLY the above $200 Intel notebook processors. That means that if NO other company sold $200+ processor then it would be about 94%. But we all know that they do, and all server chips are above $200, so I call total BS on this one.

Now, this also doesn't tell us anything about profit markets, or revenue at all. If you sell 97 processors at $150 and 3 processors at $1000 then the 3 1000% processors brought in over 17% of your profit. Not to mention the profit margin on the high end chips are very high compared to low end chips, so the profit from high end chips is even more significant.
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post #36 of 37
Profit margins are like insanely high probably I mean if you don't count R&D + factory staff and crap. Isn't it like absurdly cheap to actually make the damn thing? Like materials -> Product and even so with factory costs put in aren't profit margins still high?

Anyway back on topc... Well DUH! Of course if I was average joe and had 500$ paycheck in my hand and needed a new processor why would I buy a C2Q when I can get a Pent D for a bunch less money, plus I can spend the rest on warranty..
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post #37 of 37
Quote:
Originally Posted by MGX1016 View Post
Profit margins are like insanely high probably I mean if you don't count R&D + factory staff and crap. Isn't it like absurdly cheap to actually make the damn thing? Like materials -> Product and even so with factory costs put in aren't profit margins still high?

Anyway back on topc... Well DUH! Of course if I was average joe and had 500$ paycheck in my hand and needed a new processor why would I buy a C2Q when I can get a Pent D for a bunch less money, plus I can spend the rest on warranty..
R&D is a HUGE part of the cost of a product, especially in the technology market. It cost Intel literally billions of dollars to master the 45nm process and build the fabs capable of producing it. That is just a manufacturing process! There is even more costs in the design of processor architecture. I am sure the majority of the price you pay for a processor (or videocard or TV) goes to pay off the R&D costs.
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