Amd prices going up in april, sempron down in may

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[H]F Junkie
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Got this in my e-mail. I was signed up at one of the techtours
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AMD is continually assessing and adjusting its pricing to best meet the needs of our customers in the competitive environment. The following price changes should be expected Q2 2006:

* Effective April 10th, the desktop AMD Athlon™ 64 and AMD Athlon™ 64 X2 processors will have a small price adjustment upwards, adding a few dollars to the current prices of these products. AMD is confident that these products will continue to deliver outstanding price performance to the market.
AMD Athlon™ 64 FX is not impacted by these moves and will hold flat in price.

* Effective May 15th, the AMD Sempron™ prices will adjust downwards. The May 15th pricing will also include socket AM2 pricing for many AMD Athlon and AMD Sempron branded products in order to provide guidance on product pricing prior to launch. We believe that this full product offering of socket AM2 products will drive a hard and fast transition to the AM2 platform as well as drive cost effective motherboard solutions.

For questions regarding the details of Q2 pricing please contact your AMD sales representative or an AMD Authorized Distributor.
 
If true, another smart move by AMD. Increase prices in response to Conroe to die quick and pain-free :p
 
Sounds to me like they're bringing up the prices to promote the switch to AM2.
 
another way to look at this picture is probably AMD is encountering production yield issues which affects cost per unit.
 
No - I think its correct to assume that they will drive s939 prices upward a bit to help promote AM2 and make it seem like more of a bargain. Seems like a foolish idea unless AM2 is a real world-beater.
 
empoy said:
another way to look at this picture is probably AMD is encountering production yield issues which affects cost per unit.
Click to expand...

Another way to look at that is AMD is encountering production that is not meeting demand which affects price per unit. ;) :D
 
Not domestically - that's for sure. They've got over 80% of the OEM desktop unit sales as of last quarter and they are expanding overseas, in the server markets and in laptops (where thay lag well behind.) Its just a marketing ploy to help launch AM2 but it might come back to bite them if they price AM2 high and up s939 prices in the face of a $550+/- Conroe at 2.66ghz. Like I said - it seems like a pretty dumb idea to me but we'll see how it all shakes out.
 
I don't think any of us can conclusively state the reason behind the price increases. We can speculate as to whether AMD is trying to push people towards AM2, or whether their supply/yield issues are driving up cost, but I don't think any of us know for sure (barring, perhaps, some AMD moles...). Me? I think they're increasing prices simply because they can. They're selling every chip they can make. Demand is greater than supply at the current price, so I think they're increasing the price to maximise their profits.

I think it's a bit early to be raising prices to drive people to AM2. If it were me, I'd raise prices on S939 at the same time AM2 is released. I find it interesting that Sempron prices are dropping, though. Perhaps demand for them isn't keeping up with supply?

 
Maybe they are raising prices so they can slash them when conroe comes out, and make the price drop seem bigger.
 
Mohonri said:
I think they're increasing prices simply because they can. They're selling every chip they can make. Demand is greater than supply at the current price, so I think they're increasing the price to maximise their profits.
Click to expand...

This is exactly what I was thinking when I read the story but you beat me to posting it. :)
 
well I think they are trying to milk the cow as much as they can until intel's conroe comes out. I am sure by that point, conroe will drive down the prices and chances are, amd will be unable to milk that cow anymore as people will flock to the cheaper intel offerings if not conroes...
I am just happy I jumped on the opty dual core when I did.
 
I think that AMD has made a mistake doing this. Them trying to reap larger profits while they are on top shows no loyalty support to there customers. So if Intel does take the crown I imagine more people will flock to Intel just because of them doing this. In the long run this could cost them way more money that the little they will gain by this action.
 
Well if its only a couple of $ I can deal with that, but it really doesn't matter to me as I got a [email protected] and it Idles around 35C and goes about 47C full load (both cores), I could push it farther but it's more then adequete currently at everything I do.
 
I don't think they would make a announcement if it was only for a couple dollars but we can all hope it not a large increase.

But if it for something like R&D to make sure they stay in the game im all for that. Competition keeps prices low and innovation high. :)
 
So is it just me or did this post start before the posting on the hardocp.com frontpage? If so, shouldn't Robstar get a little credit for his find? To the best of my knowledge he doesn't have any feathers.
 
Stupid AMD I was hoping for a price DROP on the 4400 but now this just gives me more reason to wait for Conroe. I've always owned AMD systems but its looking like I'll be going intel by the end of next summer.
 
HDBox2d1 said:
Nooo! It finally happend.

The 4800+ at newegg.com is now $632.. It used to be $630, it went up $2.00
Ohh well, this will mean the X2 line will be dropping in price once the AM2 hits the stores right?

http://www.newegg.com/Product/Produ...Ntk=all&N=0&minPrice=&maxPrice=&Go.x=0&Go.y=0

I have not checked any other AMD processors, i guess alot of them went up in price - $2.00?
Click to expand...

Yep they went up 2$, although I don't really care as its hardly a difference anyways, alot of semprons went down in price 5-10$
 
Socket AM2 has been released to some online stores. The online stores that carry AM2, the X2 and Opty prices have Not dropped in price as of yet :(
I wonder how long it would be until S939 X2s will drop down in price.
 
Whitewolf said:
I think that AMD has made a mistake doing this. Them trying to reap larger profits while they are on top shows no loyalty support to there customers. So if Intel does take the crown I imagine more people will flock to Intel just because of them doing this. In the long run this could cost them way more money that the little they will gain by this action.
Click to expand...

AMD is in the business of making money for its shareholders.

They currently have no choice but to keep x2 prices high or wall street will punish them for it.

Its all to do with the oppertunity cost of making cheap dual core processors...Lets look at the Oppertunity cost of reducing the price of A64 x2 processors...Assuming that a dual core processor cost twice as much to make as single core CPU.....,(A64 x2 is ~ 230mm2 die size.. A64 has 106mm2 die size..)

If AMD slashes price on there x2 parts, they will loose more revenue when compared to building and selling 2 single core parts.

Lets just compare the prices. Lost revenue = the selling price of 2 equivelent single core CPUs minus price of the Dual core CPU. i.e. AMD will make $42 USD more money by selling (2) two A64 4000+ than a X2 4800..

Dual Core CPU price
2.4 Ghz/1MB......$630.........Lost revenue = $42
2.4 GHz/512...... $547.........Lost revenue = $21
2.2 GHz/1MB ...... $460.........Lost revenue = $10
2.2 GHz/512 ...... $357.........Lost revenue = $13
2.0 GHz/512 ......$297.........Lost revenue = -$27

Single Core CPU Price
2.4 GHz/1MB $336
2.4 GHz/512 $284
2.2 GHz/1MB $235
2.2 GHz/512 $185
2.0 GHz/512 $135

As you can clearly see, AMD is already incurring an oppertunity cost of at least US$10 for making most of its A64 x2 CPU's.....Its even worse for higher end model. Therefore, don't expect to see cheaper A64 x2 any time soon.. And whats more..AM2 core sizes have got bigger too...so cost went up with those too....

AMD currently has the incentive to keep selling A64 single core parts and discourage A64 x2 sales....
- The oppertunity cost of selling x2 is two high. They can make more money selling 2 equivelent single core CPU's.
- Since single core use 1/2 the die space of dual core chips you can build twice as much of them. So with your current chip manufacturing capacity, you can capture twice the amount market share and Wall street really care about market share for AMD.

In short, don't expect massive x2 price drops...Every X2 except the x2 3800+ is too cheap already.
 
AMD currently has the incentive to keep selling A64 single core parts and discourage A64 x2 sales....
Click to expand...
There's one other good reason--Intel is trying to wage a price war on the dual-core front. And depending on how Conroe actually performs when it makes it to market, it may (or may not) be cheaper and faster than the X2s.

Oh, and I just thought of another one. Twice the die area means twice the probability of a defect that would ruin a dual-core processor, so yeilds can't be as high.
 
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