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Will Core i5 force AMD to put up or shut up?



Lynnfield is coming. Make no mistake about that.  But what will it mean to the market place?

Ever since Intel launched Conroe AMD has been playing catch up. After the disaster that was Barcelona AMD was in a bad place. They have worked exceptionally hard to regain the ground lost and have put out some great products. Unfortunately they have not been able to compete with Intel’s top-end CPU.

Instead AMD has been forced to regress their marketing strategy to one similar to the AMD K2 days. Back in those days AMD touted being better for price/performance and also for business applications.

This is very similar to the line they are taking today with Phenom II i.e. the 45m Shanghai core. Of course there is the small fact that AMD has the higher OC numbers right now. But as the average consumer does not overclock it is only important to a small portion of the market. Where AMD does benefit is in their pricing structure.

Yes Core i7 9xx can simply trounce the Phenom II, as can most of the upper level Core 2 Quads. But when you place them side by side in terms of pricing AMD takes a small but a very important lead. The price of AMD's platform is more affordable than either Socket 775 and its Core 2 CPUs, or Socket LGA-1366 and its expensive motherboards. AMD played its cards right with the Spider and Dragon platforms, but Intel has an answer with the upcoming LGA-1156.

So what happens when Core i5-700 and i7-800 series come out? If this new CPU from Intel can increase performance of the Core 2 Quad, lower the Per CPU price, and have a decent adoption cost (this includes the cost of any new hardware like mainboards) then Intel can throw a wrench in AMD’s current marketing strategy. In effect it will force AMD to up the ante and develop new and competing products very quickly. This is something that no amount of lawsuits will help them with.

Given the recent rumor that AMD is developing sexa-core Phenom II X6, we might see that additional pricing leverage. Only time will tell.



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Comments:

@ PHII is Old by: Sean Kalinich on 9/10/2009
And you could say that Core i7 is Intel's old as they are coming out with a 32nm version early in Q1. The argument is moot.

Ruiz ruined AMD with his inability to lead the company. Lawsuits and Complaints are AMD's pattern. Not innovation.
AMD has always complained to Mom ever since the original 2x86 days. I liked their products back in the K62, 3, Althon and A64/Opteron days but after that they lost sight. AM2 was a waste of time and money and AM3 is really not much better. Barcelona hurt them quite a bit and all the hype around it lost them market trust.

I also love how people talk about Intel and what they did with the P4, yet I never hear anyone talking about Apple and their 80%+ market share of iPods etc. If you apply one rule it needs to apply across the board.

EVERY company gives discounts to get business. Every company tries to exclusivity. Look at Carriers in the US and every box store out, look at loyalty cash. It is a FACT of business.

Every business is dirty AMD is not above this either.

To be honest, if AMD would stop starting things and then dropping them they would be in a much better position than they are now. PhyX on GPU, Netbook CPUs, Gpahics on CPU, and many many more. Yet with each of these they never finished what they started. They dropped the ball each time.

THAT is how you lose a business war.

Phenom 2 is AMD's old architecture by: Anonymous on 9/9/2009
Phenom 2 is AMD's old architecture

Bulldozer is AMD's new architecture meant for this year and the I7 competitor but delayed until 2011. The much smaller company cannot innovate on design and manufacture like Intel. Seems to take them about 5 years for a truly new design, compare that to Intel’s tick tock. Why? Intel is 10x the size and 30x the money and 80% market share.
And no company that uses illegal practices to make sure their inferior P4 had abetter market share, therefore restricting that company’s future R & D ever gets my respect!

Just my pennies worth.
Phenom II X5 by: Anonymous on 9/4/2009
Of course they will have an answer... before the price/performance vantage drops and before thuban 6 core 32or45nm they can reuse the istambul with one slow or broken core. V.
Show me by: Sean Kalinich on 9/4/2009
As I have multiple AMD and Intel CPUs (and have tested them side by side) I would like for you to show me one credible benchmark that shows ANY PHII running faster than an i7 at stock speeds
then show me a clock for clock comparrison where an similarly clocked PHII out performs the Intel CPU at the same speed

Gaming is not a valid benchmark as it has been known for YEARs that at resolutions above 1024x768 the CPU has almost no impact on performance.

Show me some real world testing, lightwave renders, video encoding, Rar file, encryption decryption.

The simple fact is that you cannot. So in CPU performance PHII cannot compete with what Intel has. AMD sat back after A64 and did not innovate. I wish they would as they need to competition is good for the market lawsuits and acccusations are not. They bring nothing to the table. All the EU fines in the world will not make AMD CPUs run faster.

I had a great deal of respect for AMD until they started down the anti-trust road. The alienated the DIY and enthusast community and stopped innovating. It was wrong and a great company stagnated. The ATi buy was a huge mistake and they still have not recovered from that in financial terms (although the GPU side of the house is the only succesful part). So in the end as I state in my article unless AMD can pull something miraculous out of their hat Lynnfield (Core i5) represents a real danger to their market share.
Move on... by: Anonymous on 9/4/2009
AMD took its eye off the ball after Athlon 64 wasted p4. Phenom II looks a resonable short term effort and is the 1st AMD thats almost tempted me away from my q6600. However, I'm waiting for revolution, not evolution. AMD NEEDS to put R&D into production AND SOON.
by: Anonymous on 9/3/2009
PH2 will do perform same (+-few%) in games CI7 @1680*1050 & more..


SO WTF INTEL F.A.N.B.O.I.S.M. ???? gtfo
.


CI7 will better do in video coding - which 4 me : gamer is not relevant....

_____________________________
for SAME money i can buy a lot of things, not only a mobo & cpu!!!!!!
by: Anonymous on 9/3/2009
This is what happens:
Intel fanboys can't admit the hard fact that Phenom II does compete with I7 in price performance and (depending on the app), it beats even the highest i7 975 extreme edition.

Get used to it guys. There's nothing wrong about it. Maybe, AMD might not be up to par clock per clock speaking, but it does give a decent fight when money is a decisive factor.
by: LooseCannon on 9/3/2009
There is no point in even bringing i7 into the equation,the PhII is not even close.

And form what i've seen AMD could be in some serious trouble now that the 15 is on the scene with regard to price and performance
I guess? by: Anonymous on 9/3/2009
"That Clock for Clock PII ties or beats C2Q and comes on the heels of CI7 by a few percentage points, on average."


Even if that were true, and it's not, you're proud that AMD is finally competitive with chips that Intel is discontinuing in a couple months for superior products anyway?
PII vs C2Q vs CI7 by: Anonymous on 9/3/2009
Any testing I've done confirms what many places I've checked say; That Clock for Clock PII ties or beats C2Q and comes on the heels of CI7 by a few percentage points, on average. I think CI5 is all that Intel can do to avoid losing some marketshare to AMD, because AMD's new dual-core stuff is very gateway market oriented. AMD is smart for releasing the Athlon II stuff and the lower end PII parts when they did because it gets as many people at least interested in AMD again and gets them in a very upgradeable system whereas Intel's next step is a whole new mobo and cpu, and in many cases RAM too.
PII Vs C2Q by: Sean Kalinich on 9/3/2009
Yes, I even mention that directly in the article. If you compare $ for $ then yes the PII will outperform the same priced C2Q. However if you put them clock for clock there is no comparrion the C2Q wins easily.

That type of performance will only get you so far.

Core i5 and P55 will be a new ballgame for Intel. There are changes that should reduce the cost and might put the Intel CPUs more in line pricewise so that if you compare PII to Core i5 price for price we might see a differnt result.
he is right by: Anonymous on 9/2/2009
Ph II win on price partity. But compare them clock to clock and i think C2Q dumps PhII in the hearest gutter. I think that is what the author is trying to say. Hence not performance but marketting stratergy
What the hell are you smoking Anon!? by: Anonymous on 9/2/2009
I think you need to recheck your benches
WTF are you smoking? by: Anonymous on 9/2/2009
PhII is pretty much winning against C2Q everywhere, especially games and certain encoding.
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