Intel says “we will take a hit in the profit margin to get your money”… kinda
Seems the Intel is setting up to drop prices on their chips to be more competitive with AMD and hopefully swoop in to choke out the competition. They are so confident in this method they even annouced adjusted 2006 profit estimates that dropped their end of the year numbers by 10%!!… and when you’re making billions people… thats a hefty chunk of change.
Concern over a price war led Yeung to cut 2006 profit estimates for Intel by 10 percent, to 77 cents a share, and for AMD by 11 percent, to $1.14 per share.
Details are still hear-say at this point but some analyst are projecting rather wide scoping margins.
Mulloy declined to comment on specific price cuts, but Citigroup analyst Glen Yeung said in a note on Wednesday that, based on talks with Intel customers, Pentium prices could fall by between 8 percent and 61 percent by late July.
61%!!!! what are they going to do with all the Celerons… this could mean getting a Celeron notebook for chump change … or getting a P4 or better for a very very reasonable price.
Another analyst thinks this is a move on Intels part to put a little push into the market because the Ghz and Multichip wars have people a bit shy on making a purchase because we all know that prices are going to continue to drop and performance increase on machines that are far from incapable of most computer users tasks. They also think its a competitive move on behalf of Intel to help give them a foot up on AMD, this also has analysts talking.
“The one concern I have is that Intel is in pretty dire straights in terms of getting rid of their old inventory and old chips,” Feeney said. “What we’re seeing now is a lot of people sitting around waiting to see what the next prices will look like, and that’s hurting AMD.”
As far as Intel making the price adjustments to liquidate old inventory, does this mean we can expect high prices again once their old stock is gone? Does this mean we might start seeing P4′s in automobiles at resonable prices?… a cell phone running a P4 with hyper threading (besides burning holes in your pants pockets)?… my mind begins to wander… if these chips really become that reasonable will we start to see them in more consumer electronics accross the market… and will viable powerful computers become more common place for the casual computer shopper?
Your thoughts?… and also… what would you like to see a P4 in?
