The DigiTimes website reported late last month before closing its paid subscription to the outside world that Intel could lower the prices for its desktop processors by 10-15%. According to the source, such a move would allow Intel to more effectively resist the expansion of 7-nm AMD Ryzen 3000 processors. Patrick Moorhead, a Moor Insights & Strategy expert, published his position on Intel's competitive strategy on the Forbes website.
In his opinion, Intel is more likely to allow AMD to take part of its market share, rather than opting for a serious price cut. In recent years, Intel has tried to reduce the degree of dependence on revenue from the segment of personal computers, but so far the process has been slow. Demand for PCs is declining over the long term in the long run. In order not to reduce revenue in this segment, Intel has raised the average sales price of its desktop processors in recent years, mainly due to the increase in the share of more expensive models. If Intel is now lowering the prices of those models that compete with new AMD products, this tactic will stop working.
In some "parts of the processor at the front", AMD really succeeds in effectively pushing Intel. In the retail segment, AMD processors sold in bulk are no longer subordinate to popular Intel products, but in some countries they exceed them. However, Intel continues the main "cash register" in the corporate segment, the company's positions in it are quite strong and can easily sacrifice a few percent of the market share in order to maintain a profit margin.
According to Moor Insights & Strategy, Intel will resist the expansion of AMD processors due to increased marketing activity. A variety of small images of the same Core i9-9900KS, a processor that can retain all eight cores at 5.0 GHz can be used. It will be released before the end of this year as it was interested in Intel products in anticipation of the 10-model Comet Lake-S, which will appear not earlier than in the first quarter of next year.
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