News Japanese Bank Believes Intel’s Stock Value Will Rise on CPU Price Cuts

[Admin]

An analyst from Mizuho Bank believes Intel's stock value will rise due to recent price reductions on Cascade Lake.

Japanese Bank Believes Intel’s Stock Value Will Rise on CPU Price Cuts : Read more

 

[digitalgriffin]

Intel has had an interesting strategy. Never move the price of older stock downward. This means an i7 from generation 4 will cost the same as an i7 processor from generation 9 even though there are performance improvements.

However all this goes to hell now there is competition. Pricing the next generation at nearly 1/2 it's original cost cuts into margin. It might raise your unit sales, but the roi pricing curve goes to hell. Intel isn't making process improvements which lend to greater yields. There is still a shortage. This move it to KEEP AMD from gaining a foothold in HEDT where they can make money. Intel slides have already shown how much they are willing to slash and burn to stay in the forefront of the market.

To be honest it's a bit of a knee jerk reaction. There's a shortage on both sides for the HEDT/Server market. I'm not sure why anyone (ie: Intel) would Kamikaze the market when there is a shortage other then to ensure your enemy doesn't get stronger. That's almost predatory in nature (dumping)

 

[TJ Hooker]

Intel has had an interesting strategy. Never move the price of older stock downward. This means an i7 from generation 4 will cost the same as an i7 processor from generation 9 even though there are performance improvements.

I don't know if the street pricing of older Intel chips has anything to do with Intel. I'm pretty sure Intel more or less stops selling them after the next gen comes out, and then it's up to the retailers to decide what to sell their remaining stock for. And then you get a bunch of marketplace sellers listing them for stupid prices. Same thing seems to happen for old GPUs.

 

[digitalgriffin]

I don't know if the street pricing of older Intel chips has anything to do with Intel. I'm pretty sure Intel more or less stops selling them after the next gen comes out, and then it's up to the retailers to decide what to sell their remaining stock for. And then you get a bunch of marketplace sellers listing them for stupid prices. Same thing seems to happen for old GPUs.

Even generation old CPU's don't come down in price. You are correct though. Intel discontinues tray orders usually with 1 to 2 generations. But they never lower the price on previous gen once the next gen comes out.