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Intel mulling a phased price reduction strategy to counter AMD, but all that could be in vain once Zen 3 hits the market

Intel is looking to cut prices of its CPUs to counter AMD's aggressive pricing. (Image Source: Digital Trends)
Intel is looking to cut prices of its CPUs to counter AMD's aggressive pricing. (Image Source: Digital Trends)
Industry sources report that Intel could be implementing a phased price reduction strategy this year starting with OEMs in H2 2020 to counter AMD's aggressive pricing strategy and market share increase of Ryzen CPUs. How far will this impact end-user pricing and to which processors this applies to, is still unclear.
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Last October, we reported about Intel's plans to offer discounts so as to thwart AMD's Ryzen onslaught. Team Blue seemed to be ready for it even thought it could cost the company an estimated US$3 billion. Now, according to a report by DigiTimes, Intel is all set to implement this strategy to counter AMD's already aggressive pricing and rising marketshare for Ryzen. 

DigiTimes reports that Intel is planning to cut prices in phases. The first phase would focus on selling Intel CPUs to system integrators and OEMs at reduced prices. We do not yet know what is the extent of this discount and how this would translate to customers buying laptops and pre-built desktops from OEMs like Asus, HP, Dell, etc. Word on the street is that this phase is likely to be executed sometime in H2 2020. Intel's phased discount strategy may mean that the benefits would eventually trickle-down to those who buy CPUs off the shelves as well. 

We also do not know which CPU families are being targeted for the discounted prices. Currently, the 10th generation Core X HEDT processors such as the Core i9-10980XE are available at prices much lower than what their predecessors used to cost. However, AMD Threadripper 3000's stellar performance combined with the recent availability of the 64-core Threadripper 3990X showed that discounts alone may not save Intel. 

Going by these developments, one would expect that the upcoming Comet Lake-S and Comet Lake-H series may be priced lucratively. Comet Lake-H is touted to be available sometime in Q1 2020 for gaming laptops, and while we do not have any availability info for Comet Lake-S, previous launches suggest a Q3 2020 timeline. This means while Comet Lake-H may not offer any significant price cuts at launch, Comet Lake-S and the upcoming Tiger Lake could adopt a more aggressive pricing strategy.

Of course, pricing is just half the story. The real deal is with the overall performance and performance per dollar, which has almost always been AMD's forte. While AMD is set to offer an enticing Ryzen 4000 series for mobile and Zen 3 expected to offer even more IPC gains thanks to improvements from the 7nm+ process, Intel's mainstream offerings will continue to remain on 14nm save for Tiger Lake. Intel would need much more than mere discounts to swing fortunes back in its favor. 

Source(s)

DigiTimes (Paywall) via Guru3D

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Vaidyanathan Subramaniam
Vaidyanathan Subramaniam - Managing Editor - 1357 articles published on Notebookcheck since 2012
Though a cell and molecular biologist by training, I have been drawn towards computers from a very young age ever since I got my first PC in 1998. My passion for technology grew quite exponentially with the times, and it has been an incredible experience from being a much solicited source for tech advice and troubleshooting among family and friends to joining Notebookcheck in 2017 as a professional tech journalist. Now, I am a Lead Editor at Notebookcheck covering news and reviews encompassing a wide gamut of the technology landscape for Indian and global audiences. When I am not hunting for the next big story or taking complex measurements for reviews, you can find me unwinding to a nice read, listening to some soulful music, or trying out a new game.
contact me via: @Geeky_Vaidy
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 01 > Intel mulling a phased price reduction strategy to counter AMD, but all that could be in vain once Zen 3 hits the market
Vaidyanathan Subramaniam, 2020-01-23 (Update: 2020-01-23)