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Feature - It is no secret that the processor market is shifting: Demand for desktop processors has been declining for some time now while growing demand for notebook CPUs is the reason why there is still growth in the processor market. AMD and Intel have to adjust to a changing purchase behavior as consumers are looking for cheaper computers. TG Daily took a closer look at the current desktop CPU market and compared 1000-unit tray prices with retail prices to provide a better idea of current price pressures are and which CPUs may represent the best deals today.
The price war between AMD and Intel, which followed the introduction of Intel’s Core 2 Duo processors and almost wiped out AMD, is largely considered to be over as both companies have settled in their usual comfort zones with Intel dominating higher price regions and AMD having an advantage in lower-priced segments. However, as desktop PC buyers are moving toward cheaper PCs, it is apparent that a new battlefield is emerging and both companies may be in for another round of fierce confrontation over the sub-$700 desktop PC market.
We will have to wait for the Q3 earnings calls to get a better idea how well both companies did in the most recent fiscal quarter – especially during the back-to-school season. However, we felt it was time for a market snapshot to see if there are price pressures and where consumers may be able to pick up bargains.
There are several ways to do such a market snapshot. We did price/performance charts in the past, but with the current array of dozens of processors and multiple generations of CPUs, a fair analysis with consistent benchmarks is virtually impossible to achieve and we are not aware of any publication that in fact has maintained a consistent benchmark parcours over the past three years.
Performance, however, was not the focus of this snapshot anyway – it was price and the segments Intel and AMD compete in. So we decided to separate the market into the segments below $100, below $150 and below $200. These three segments cover more than 90% of CPUs sold today and AMD currently does not offer a desktop CPU with a tray price of $200 or more. Typically, tray prices are well below retail prices and if retail prices approach tray prices or even fall below tray prices, it is a sign that the manufacturer is selling its CPUs with substantial discounts into the market – indicating areas of competition or low demand.
On the following pages, we have compiled current tray-prices and compared them with current retail prices. We defined the retail price of each CPU as the lowest retail price we could determine at the time of this writing, based on the lowest price offered by any retailer that had the CPU in stock. Note: These charts compare the current product portfolio of AMD and Intel at similar prices with AMD providing the baseline. We chose Intel processors that closely match AMD’s price points. The charts do not claim to be complete and do not compare the performance levels of the listed processors.
Let’s begin with the segment below $100. (see the full-size charts in our gallery)
Both AMD and Intel cover the price range between $30 and $90 without gaps. AMD, however has a slightly broader product line than Intel at this time. Five of Intel’s nine processors in this segment currently retail for less than the tray price, but there are very few true bargains.
Ten of AMD’s 13 CPUs in this segment sell for less than the tray price and this chart shows that some of the processors can be purchased online with a discount of up to 20%. Certain higher-end X2-series dual-core processors can be purchased with a substantial discount, but the most interesting candidate in terms of pricing may be the X2 4450e, which should appeal to people thinking about assembling a home entertainment center PC.
A surprise on Intel’s side is the recently introduced Pentium E5200, a 45 nm-generation chip that already sells below its tray price.
Using our data, the average discount (tray price vs. lowest retail price) shown by AMD processors in the segment below $100 is 9.5%, while Intel CPUs are sold with an average discount of 6.5%.
Read on the next page: Processors with tray prices from $100 - $150
The price war between AMD and Intel, which followed the introduction of Intel’s Core 2 Duo processors and almost wiped out AMD, is largely considered to be over as both companies have settled in their usual comfort zones with Intel dominating higher price regions and AMD having an advantage in lower-priced segments. However, as desktop PC buyers are moving toward cheaper PCs, it is apparent that a new battlefield is emerging and both companies may be in for another round of fierce confrontation over the sub-$700 desktop PC market.
We will have to wait for the Q3 earnings calls to get a better idea how well both companies did in the most recent fiscal quarter – especially during the back-to-school season. However, we felt it was time for a market snapshot to see if there are price pressures and where consumers may be able to pick up bargains.
There are several ways to do such a market snapshot. We did price/performance charts in the past, but with the current array of dozens of processors and multiple generations of CPUs, a fair analysis with consistent benchmarks is virtually impossible to achieve and we are not aware of any publication that in fact has maintained a consistent benchmark parcours over the past three years.
Performance, however, was not the focus of this snapshot anyway – it was price and the segments Intel and AMD compete in. So we decided to separate the market into the segments below $100, below $150 and below $200. These three segments cover more than 90% of CPUs sold today and AMD currently does not offer a desktop CPU with a tray price of $200 or more. Typically, tray prices are well below retail prices and if retail prices approach tray prices or even fall below tray prices, it is a sign that the manufacturer is selling its CPUs with substantial discounts into the market – indicating areas of competition or low demand.
On the following pages, we have compiled current tray-prices and compared them with current retail prices. We defined the retail price of each CPU as the lowest retail price we could determine at the time of this writing, based on the lowest price offered by any retailer that had the CPU in stock. Note: These charts compare the current product portfolio of AMD and Intel at similar prices with AMD providing the baseline. We chose Intel processors that closely match AMD’s price points. The charts do not claim to be complete and do not compare the performance levels of the listed processors.
Let’s begin with the segment below $100. (see the full-size charts in our gallery)
Both AMD and Intel cover the price range between $30 and $90 without gaps. AMD, however has a slightly broader product line than Intel at this time. Five of Intel’s nine processors in this segment currently retail for less than the tray price, but there are very few true bargains.
Ten of AMD’s 13 CPUs in this segment sell for less than the tray price and this chart shows that some of the processors can be purchased online with a discount of up to 20%. Certain higher-end X2-series dual-core processors can be purchased with a substantial discount, but the most interesting candidate in terms of pricing may be the X2 4450e, which should appeal to people thinking about assembling a home entertainment center PC.
A surprise on Intel’s side is the recently introduced Pentium E5200, a 45 nm-generation chip that already sells below its tray price.
Using our data, the average discount (tray price vs. lowest retail price) shown by AMD processors in the segment below $100 is 9.5%, while Intel CPUs are sold with an average discount of 6.5%.
Read on the next page: Processors with tray prices from $100 - $150