Intel price cuts on the way

Robert Hallock (Thrax)

January 16, 2009 12:55 PM ET in News,

intelWord has it that the price of Intel silicon is going to fall 14-40% on the heels of the Phenom II’s release.

Intel (INTC) plans to cut prices on its quad-core, dual-core and Xeon processors on January 18, according to Pacific Crest analyst Michael McConnell. He sees cuts of 15%-40$ on quad-core processors, 13% on dual-core chips and 15%-40% on Xeon quad-core server processors. He contends the timing of the cuts is unique, with scheduled price cuts typically occurring in April and October.

Of course it remains to be seen if the price cuts will trickle down into the Core 2 Quad space, but we strongly suspect that it will. The Phenom II for the desktop is a stone’s throw away from the Shanghai in the server space that has inspired Intel’s cuts.

8 Comments:

  1. Snarkasm
    16 Jan '09, 6:56 pm

    Come onnnnn cheaper i7 965!

    Daddy wants a new tower.

  2. Gnome Queen
    16 Jan '09, 8:32 pm

    Nooo....must not build a new computer, even if the prices are dropping...nooo. Noooo. No......

  3. Komete
    16 Jan '09, 10:04 pm

    OI, they drop, then AMD drops, and then we are in the same boat. Just happier pockets

  4. AlexDeGruven
    17 Jan '09, 2:33 am

    That's how it works. AMD comes out with something new (in this case, the Phenom II), and Intel drops the price of its existing chips to keep them competing.

    Later on this year, Intel will release new chips, and AMD will drop the prices on all of its other chips.

    It's the nature of the beast.

    Personally, I wouldn't mind picking up a Quad-core for this system on the cheap. The little E7200 runs like a champ, but I'm always game for more grunt.

  5. NiGHTS
    17 Jan '09, 2:41 am
    Quoting AlexDeGruven

    That's how it works. AMD comes out with something new (in this case, the Phenom II), and Intel drops the price of its existing chips to keep them competing.

    ...that, sure. Moreso pumping out chips like crazy to meet a demand that absolutely dried up, leaving them in the huge hole they're in now. Same reason why consumer level i7's have been delayed.

  6. DrLiam
    17 Jan '09, 8:03 am

    Hmm, Core 2 Duos just got even more interesting. . .

  7. Zuntar
    17 Jan '09, 2:30 pm

    Just need the mobos to drop in price.

  8. Miltownstaydown
    19 Jan '09, 5:43 pm

    Cheaper Quad Extremes maybe?

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