Intel recently said that at least until the end of this year, the company's high-end processor prices will decline. Analysts believe that this is mainly due to AMD Ryzen processor due to the strong challenge.
The first quarter of this year, Intel desktop and notebook computer processor prices are on the rise. This led to Intel's Client Computing Business (CCG) revenue of $ 8 billion, an increase of 6%.
But now, Intel PC processor is facing AMD's latest Ryzen processor, a serious challenge. Ryzen series processor performance and Intel high-end processor performance, but the price is much lower than Intel.
For example, the AMD Ryzen 7 1800X is an 8-core processor and the fastest Ryzen processor, priced at just $ 499. In contrast, Intel's same level of products Core i7-6900K price of up to $ 1089, while the 10-core Core i7-6950X is up to $ 1723.
In a press conference call on Thursday, when asked whether the processor price drop was due to AMD Ryzen processor competition, Intel CEO Krzanich avoided the problem, saying that the market dynamics was a the reason.
Research firm Tirias Research analyst Jim & middot; McGregor (Jim McGregor) said that more than a decade, the industry generally believe that AMD processor performance is lower than Intel's same level of products. To this end, PC manufacturers have begun to gradually give up AMD. But now, with the Ryzen processor market, they re-cooperation with AMD.
McGregor said: "Today, AMD has introduced a competitive product, and the price was significantly lower than Intel. For PC makers who want to increase profit margins, this is quite attractive. & Rdquo;
It is hard to judge the overall impact of AMD Ryzen processors on Intel chips, but Dean McCarron, an analyst at Mercury Research, a research firm, said that at the retail store and other places, after the Ryzen processor was marketed, the Intel box The price of the processor was cut.
At present, Ryzen processor only Intel high-end processor has brought impact. But later this year, AMD will also introduce new processors for the mainstream market (relatively low end). By then, Intel may bring a greater threat to the same level of products, because the low-end market is more sensitive to the price.
McCullough said: "Competition is a good thing, Intel certainly feel the pressure of AMD." & Rdquo;
Of course, AMD Ryzen processor is not the only reason for Intel to lower the processor price. Another reason is that consumers from the low-end processor to the high-end processor, the pace of the slowdown. Analysts believe that Intel needs to adjust the price of high-end processors, so as to attract more consumers to buy.