Intel to offer Price Cuts up to $3 Billion to Compete with AMD

    intel 10thGen_Chip-on-Motherboard
    A photo shows the 10th Gen Intel Core processor on a motherboard. On Aug. 1, 2019, Intel launches 11 new, highly integrated 10th Gen Intel Core processors designed for remarkably sleek 2 in 1s and laptops. (Source: Intel Corporation)

    AMD is directly competing with Intel in the desktop, mobile and server markets all at once. While it’s barely been a year since the Ryzen 3000 series launch, AMD is gaining market share at a very rapid pace. Since Intel is still building their new infrastructure, they’re looking at other ways to disrupt the market. According to a slide by AdoredTV, Intel is going to offer some very deep price-cuts on their existing and upcoming line-up to keep up with AMD. Going by the slide, these price cuts might add up to around $3 Billion.

    Source: AdoredTV

    In his latest video, AdoredTV talks about Intel’s strategy to compete with AMD. As you can read from the slide, Intel will make use of their deep pockets to take the fight to AMD. The Illustration shows AMD’s 2018 income which is a tenth of Intel’s discount budget. Intel is expected to offer price cuts across their entire line-up: from desktop and notebook processors all the way to their Xeon server chips for up to $3 Billion.

    Intel has already started the process as the Cascade-Lake X processors will cost half their Skylake counterparts. As per reports, Intel is still in the process of building up its new infrastructure. It can be as long as 2021 till Intel is finally able to compete with AMD in terms of new technology. AMD leverages TSMC’s 7nm process and has great margins on the Ryzen processors. Not to mention the Ryzen 3000 series pretty-much outperform Intel’s current offerings by quite a margin. So, even if Intel were to spend almost $3 Billion to offer significant price cuts, AMD would technically still have an advantage. Both in terms of price and performance.

    Intel’s Comet-Lake processors might change that but they’re a Coffee-Lake refresh. They are based on the 14nm process but Intel will likely double the threads per core. Based off of the 4C/8T configuration of the i3 and the 10C/20T of the i9, it’s safe to assume that the i5 and i7 will sport the 6C/12T and 8C/16T configurations respectively. However, AMD is also expected to launch their Zen 3 line-up soon and it’ll be interesting to see how Intel keeps up.

    You can watch AdoredTV’s video below:

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