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Intel Pricing is Funny

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EQTakeOffense

[H]ard|Gawd
Joined
Sep 12, 2002
Messages
1,643
So.... Anyone besides me find it amusing that the Intel Core 2 Extreme is cheaper then any of the Intel Pentium Extreme Edition CPU's? Not to mention the fact that all of the Intel EE CPU's are still $1000 despite the fact that they are different in terms of speed/FSB ect...

Intel Pricing is Funny :p
 
Actually the pricing is spot on if you really think about it. The EE chips, by their very nature, are limited in quantities... yet people still want them. they are limited because when a CPU wafer is made not all of the cores perform to the highest levels so they test them and package them accordingly. They call this Binning. Now... let's say you have 100 CPUs and only 10 of them are capable of being EEs. You could sell them for say $100 more than the next step down and sell them all, but you could also sell them all for $400 more than the next step down. Which would you do as a business? This is standard practice in economics. It's basic supply and demand. If the demand is higher than the supply, prices will increase. If demand is lower than supply then pirces will decrease until it levels out. Why do you think AMDs prices for the past couple years have stupid high? Becuase they couldn't make enough chips for the supply... so they increased prices.
 
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