Santa Clara (CA) – Following a first wave of reviews of the Core i7 processor, still mainly known under its code-name Nehalem, Intel is officially introducing its next-generation desktop microprocessor today. The new CPU is launched in three versions that are aimed at three different desktop PC markets. Core i7 is considered to be the fastest CPU money can buy today, albeit not the cheapest, and expands Intel's already sizeable lead over AMD.




It has been more than two years since Intel introduced its fantastic Core 2 Duo processor, which helped the company to get its feet back on the ground and bring AMD down to its knees, even more so than AMD impacted Intel in the 18 months prior to the launch of the CPU. Intel still holds the lead in terms of performance over AMD today and largely dictates processor pricing as a result. Core i7 has been found to be noticeably faster than Core 2 Duo/Quad processors and is expected to effectively expand Intel's advantage.

Core i7 arrives in three native quad-core versions – the base model 920 (2.66 GHz), which has a tray price of $286, but is currently selling for about $320 - $400 in U.S. retail. The 2.93 GHz 940 has a tray price of $562 and sells for about $600 - $700 to consumers while the 3.2 GHz 965 Extreme Edition comes with a $999 tray price and sells for somewhere between $1100 and $1200 at this time.

If we compare these prices to the current U.S. retail prices of the outgoing Kentsfield 65 nm and Penryn 45 nm quad-core processors, then it is somewhat obvious that, while the i7 prices aren’t exactly low, they may be low enough to put substantial pressure on its predecessors. The cheapest way to get an Intel quad-core CPU remains the Core 2 Quad Q6600, which currently retails for an average of $213, according to Pricegrabber.com. The Q6700 retails for $401, while the 45 nm Penryns are available from $250 (Q9300). The Q9650 sells for an average of $561. On the high-end, you will have to pay $1524 for a QX9770 and $1638 for a (Skulltrail) QX9775 CPU.

If you plan on building a Core i7 PC on your own, your only option right now is an Intel X58-chipset based motherboard (with ICH10 southbridge), which is available from about $300, as well as DDR3 memory, which isn’t exactly cheap either: 1 GB of DDR3-1600 memory currently sells for somewhere between $100 and $150, depending on the manufacturer you choose. Most larger system manufacturers and boutique vendors will be offering Core i7 computers. Expect Core i7 PCs to be available from about $1000, while reasonably configured gaming PCs with a Core i7 940 will cost at least $2500 and Extreme Edition PCs will become available from about $4500 and easily break the $10,000 barrier in the most exclusive systems.      

The new processors come with several new features for Intel processors, which include an integrated memory controller and a new “Turbo Mode”. Intel also decided to bring back Hyperthreading, adding four virtual cores to the physical four cores of Core i7 CPUs. Turbo Mode, also called “Dynamic Speed Technology", is probably the most promoted feature by Intel and allows the CPU to shut down cores and increase the clock speed, which can, for example, be an advantage in legacy applications that benefit more from extra megahertz than from more cores. In multi-threaded applications, the CPU will balance the load across all cores. The new CPUs pack 731 million transistors on a die size of 263 mm2. All Core i7 processors are rated at a thermal design power of 130 watts. The Quick Path Interconnect interface provides a bandwidth of 19.2 gigatransfers per second in the 920 and 940 models and 25.6 gigatransfers in the Extreme Edition model.
     
What is especially noteworthy about this CPU release is that as far as performance is concerned, Intel isn’t competing with AMD anymore and has not done so for quite some time. Core 2 processors still lead thr market and are available in a much greater price band. At this time it seems that Core i7 will compete against its predecessors, the Q9000 series. AMD pulled its CPUs back into the sub-$200 segment, which the company claims covers about 90% of the market. In a recent analyst meeting, the company said that it will continue to focus on the mainstream (sub-$200) market in the future, which indicates that the green team will leave the high-end market entirely to Intel. Realistically, AMD hasn't much choice right now anyway.   

Of course, AMD’s claim is that it is offering the best overall performance with its balanced platform approach – which refers to the combination of the CPU and a GPU. That argument is substantially weakend with the arrival of Core i7, since the platform supports dual-graphics solutions from Nvidia and AMD/ATI. Down the road, we will see Nehalem processors with integrated graphics cores and Intel is preparing its discrete graphics solution Larrabee for 2010. As of now, Core i7 is too expensive to compete with AMD’s Phenom processors, but - depending on the availability of these processors – they are likely to impact Penryn processors and drive prices of the Q9000 series lower and soon impact Phenom X4 pricing. AMD’s 45 nm Phenom II X4 is due for a Q1 2009 release, but it is obvious that AMD will need a very capable chip to defend itself against a wave of Intel processors that could hit the $200 mark soon. We did hear that the 45 nm production is shaping up well and immersion lithography is buying AMD an extra couple hundred megahertz, which means that we should expect Phenom II X4 to be available at significantly higher clock speeds than the current Phenom X4.  

While it is clear that Intel is expanding its lead with Core i7, some hardware review sites expressed a somewhat mixed feeling about the actual performance capability of Core i7 – which seemed to be mainly based on the fact that Core i7 is not quite as revolutionary when compared to Core 2 Duo as Core 2 Duo was when compared to the Pentium 4.

X-bit labs wrote:
“[…] we expected a little more from Core i7 today. And the reason for our disappointment is actually Intel who have been stressing their sticking to “Tick-Tock” strategy and claiming that Nehalem would be a new micro-architecture. […] And as for today, mainstream users will hardly feel the benefits of all these innovations. Mostly the users of multi-socket server platforms will really enjoy the changes and modifications.”

From Anandtech:
“Expecting a sequel to be a reincarnation of the original is just setting yourself up for disappointment. A good sequel will be able to stand on its own, independent of whatever may have come before it. Nehalem is Intel's Dark Knight, it lacks the reinvention that made Conroe so incredible, but it continues what was started in 2006.”

However, all publications agreed that the Core i7 CPU is faster than the Q9000 series and shows its capability especially in multimedia applications such as video editing, rendering, archiving or image manipulation. Anandtech concluded that “there's no denying that the Core i7 is the fastest thing to close out 2008”, Tom’s Hardware stated that “the new processors are more efficient, although the system does draw more power at the platform level than the previous generation” and that “AMD falls even further behind in the x86 performance rankings”. Tweaktown probably summed it up the best: “Overall, the Core i7 is definitely a CPU you will want to own, but it comes at a cost. A new board, new CPU and if you’re a DDR2 fanboy, those sticks now have to be binned in favor of DDR3 modules as well. Pricing will no doubt be quite steep for a while, so if you want some i7 action right now, be prepared to reach deep into those pockets.”

Core i7 looks like a solid product launch for Intel. The difference to the Core 2 Duo launch, of course, is that Intel has already the lead and does not come from behind. The next two years will reveal whether Nehalem's extra performance is enough or if AMD has a chance to unveil a surprise product. We are quite certain that the transition to the next product generation in 2010 will be quite different. At that time, we will be used to CPUs with heterogeneous CPUs that will carry graphics and acceleration units and desktop processors may not be that important anymore: Intel is already selling more notebook processors than desktop CPUs and if that trend continues we will be seeing a product integration with an entirely different focus two years from now – even if we have no doubt that there is no end for the need of performance in desktop systems.

Congratulations to Intel for what appears to be another great processor. The progress we have seen over the past two years is simply stunning.   


Related story: Core i7 PCs launch with prices from $1250 to $13,000



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