Sunnyvale (CA) – AMD is serious about winning back market share in the mainstream desktop computing segment from Intel – and it has become clear that AMD’s strongest weapon will be triple-core processors. Today, the company launched its first three B3-stepping versions in the Phenom X3 series, which do not include the TLB bug anymore and are available through retail channels immediately.   

In recent days, we reported how quickly AMD’s triple- and quad-core processors have been moving into the mainstream segment of desktop PCs in the sub-$600 range. A new wave of Phenom X3 processors solidifies the impression that AMD is aggressively going after market share in this market.

AMD today released the models X3 8450 (2.1 GHz), X3 8650 (2.3 GHz) and X3 8750 (2.4 GHz). No other AMD processors carry more hope that the company will finally be able to make a dent in Intel’s dominance in the desktop market with its Core 2 Duo processor.

First, there is the notion that these are triple-core (quad-cores with one disabled core) processors trying to cash in on the consumer’s general perception that more cores are better and, as a result, three cores versus two cores can turn into a differentiating characteristic of these CPUs. Second, these are the first 50-series (B3 stepping) X3 CPUs, which means that these processors come without the TLB bug and are now ready for the channel market: If we remember, AMD previously released B2 stepping X3 processors (8400, 8600), which were planned to be exclusively available to OEMs. The reason: Distributors told AMD that they had no intention selling B2 stepping X3 Phenoms through the channel. Supply into the channel therefore was very limited and covered only by some 8400 model boxes.

Third, these new processors are cheap, at least if you are looking for more than two cores. The 8450 is priced at $145 and competes with Intel’s Core 2 Duo E7200 ($133), the 8650 at $165 (priced against Intel’s Core 2 Duo E8300, E8200, E8190, E6550, E6540, E6320 and E6300, all of which are listing for $163) and the 8750 at $195 (priced against Intel’s Core 2 Duo E8400, E6850, E6750 and E6400 currently offered at a tray price of $183). AMD claims that about 95% of the processor market is made up of sub-$200 processors and the $150-$200 segment is about 30%.

A strategy of using the triple-cores to protect the margins of its quad-core processors isn’t working out these days, especially since AMD has dropped its quad-cores into the $200-$250 range and it has been a long time since the company was competing with Intel in the +$500 or even +$300 market. The price trend is clearly pointing down and this is where these processors are increasing the pressure on AMD’s own dual-core CPUs. Even if AMD claims that there will always be a market for single-core CPUs, we now have to wonder what will happen if Intel accepts the challenge and uses some of its older Core 2 Duos to force AMD’s triple-core price down, especially considering the fact that these processors are already selling below the $150 mark?  

Triple-core processors have already been used in mainstream PCs border-lining the entry-level segment. If a new price war emerges, it isn’t particularly difficult to see that AMD dual-core processors will be pushed out of the market and AMD will mainly be manufacturing quad-core processors (since triple-core processors really are quad-core processors) for the entire desktop segment.

Of course, a question is how far these Phenoms will scale in general. AMD told TG Daily that AMD is aiming to return to the $500+ processor market in the future. It is unclear when that future will be and for now, the company officially says that this “cannot” be the focus of its current product lineup, simply since the majority of the market is in the mainstream.

I can see

Apr 23, 2008 14:36     

what AMD is doing just like the old netburst days when non-tech people believed more ghz = faster processor (athlon xp vs p4) this time they'll believe more cores = faster processor, and what's that, they are cheaper? :p good strategy to get some market share back imo but surely they are selling them at a loss?
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RE: I can see

Apr 23, 2008 16:35     

I doubt that they're that big of a loss. No doubt a good number of them are quad with some fault in one of the cores. If they didn't repackage them as tri-cores, they'd have to throw them away. That would definitely be a loss.
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this isn't new...

Apr 23, 2008 19:19     

at best buy here in canada we have had phenom x3 processor pc's for almost 2 weeks!
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AM2/AM2 war

Apr 23, 2008 22:38     

What about all us still on AM2 sockets with mobo makers that say they can't/won't release an update for the BIOS to let us run these new CPUs? AMD was supposed to be able to get them to do that and it doesn't seem like it's happening. I'm good with supporting AMD, they have good products at prices that I'm looking for. But I can't afford to buy a new motherboard every year.
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overclock

Apr 24, 2008 21:59     

The good thing about these processors seem to be the potential for the over clocking. From what I have read ,these chips get to 2.8Ghz easily and can be pushed to just over 3Ghz. Disabling the bad core seems to have done the trick. All they need to do now is release a 'black edition' with the multipliers unlocked. This may draw some enthusiasts back as this seems to be the highest stable clocked K10 so far.

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