wolverinero79
Distinguished
To be honest, Intel's not fighting AMD anymore. Intel's fighting the state of the CPU market. Let's face it, the North American market is almost as saturated as it's going to become. PC gaming is on the decline (due to the increase in console gaming, I'm sure). Chips don't break faster than the motherboards. Vista is not needed for anything really, and won't be greatly used until SP1 fixes some major issues.
Thus, there is no high volume demand for expensive chips in the consumer space (no matter who makes them). Now, around the world, there are tons of people seeking computer chips and want to get hooked into the digital age. However, $700 is their annual salary, not part of a single paycheck. Other countries that are developing currently aren't willing to spend the prices Americans are willing to spend on a computer. That's what Intel is fighting. That is why they are driving down prices - they know they have to get to a cheap state in order to be able to sell to other countries and they're working it down now, rather than in some distant future. At close to 50% margins, they're still making money hand over fist while offering cheap chips.
Now, servers are another matter - they will probably be expensive for a long time. The faster Intel (and others) can penetrate other markets with low cost systems, the more Internet infrastructure will be needed (and that runs on pricey systems).
So I think Intel's frenzied pace really is less to do with AMD and more to do with the market in general. Whether there was an AMD or not, people with computers now would still need a reason to upgrade to Intel's next chip (failure replacement orders only go so far).
AMD simply doesn't have the resources to go as quickly as Intel is moving and it'll be interesting to see what happens. Remember that AMD cannot be bought, merged, or go out of business or Intel will pull their license (so any future company will be unable to use the x86 tech).
Also, I'm sure there will be further software actions implemented that will piggy back on new hardware technologies. I don't think we've scratched the surface of figuring out how to optimize computing.
Thus, there is no high volume demand for expensive chips in the consumer space (no matter who makes them). Now, around the world, there are tons of people seeking computer chips and want to get hooked into the digital age. However, $700 is their annual salary, not part of a single paycheck. Other countries that are developing currently aren't willing to spend the prices Americans are willing to spend on a computer. That's what Intel is fighting. That is why they are driving down prices - they know they have to get to a cheap state in order to be able to sell to other countries and they're working it down now, rather than in some distant future. At close to 50% margins, they're still making money hand over fist while offering cheap chips.
Now, servers are another matter - they will probably be expensive for a long time. The faster Intel (and others) can penetrate other markets with low cost systems, the more Internet infrastructure will be needed (and that runs on pricey systems).
So I think Intel's frenzied pace really is less to do with AMD and more to do with the market in general. Whether there was an AMD or not, people with computers now would still need a reason to upgrade to Intel's next chip (failure replacement orders only go so far).
AMD simply doesn't have the resources to go as quickly as Intel is moving and it'll be interesting to see what happens. Remember that AMD cannot be bought, merged, or go out of business or Intel will pull their license (so any future company will be unable to use the x86 tech).
Also, I'm sure there will be further software actions implemented that will piggy back on new hardware technologies. I don't think we've scratched the surface of figuring out how to optimize computing.