Intel Price Drop

[CoRPS]

I don't know if this is old news, or even if it's important to you. However, I know I was hoping for a price drop in Intel processors so I can finally afford to pay for one.

Inel won't meet cost-saving goals this year because of a series of product delays and problems, but those are largely resolved, the world's largest chipmaker said. "We have recovered from thos missteps, and the machine is firing on all eight culinders in terms of product introductions," Intel CEO Crag Barrett told anaylist in New York. Intel President Paul Otellini, who is scheduled to succeed Barret in May, said the company will not meet it's target of reducing microprocessor unit costs by 15% this year. But he said unit costs will fall by 20% from 2003 to 2006, as it converts to more-efficient manufacturing facilities.

Too bad for that price cut, huh?

 

[oddlycalm]

You seem to be confusing Intel's cost of manufacturing with the end user price the processors sell for from retailers. The two are not connected in any way. Were Intel to not keep it's prices in line with market expectations and price their products too high their sales would slow dramatically causing them to miss revenue targets, which is not going to happen. Their failure to meet their cost targets will effect their earnings, but unless you own Intel stock why would you care?

If you want to track how much CPU prices have dropped over the last few months here's your site. http://www.sharkyextreme.com/guides/WCPG/index.php

If you look at the price of a P4 560 the first week of October then check the first week in December you will see there has been a $105 price drop over 60 days which is nearly 25%. Seems like quite a drop to me....

oc