Intel and AMD Quad-Core Rhetoric Heats Up

July 21, 2006 By Geoff Duncan

Chipmakers AMD and Intel are engaging in a race of words, both claiming progress toward quad-core computing even as Intel engages in a serious restructuring.

Processor makers AMD and Intel are already engaging in a war of words over the not-yet-born quad-core processor market, each claiming in their quarterly financial statements that their quad-core products are on track for strong debuts. However, despite a substantial internal restructuring aimed at streamlining the company’s internal processes, Intel is expected to be out the door with its Kentsfield and Clovertown quad-core designs by the end of 2006, with AMD vowing to demonstrate its quad-core solutions in the same timeframe.

For its part, Intel announced disappointing quarterly earnings (down 57 percent from the same period last year) along with an internal shakeup designed to cut costs and streamline the company’s internal development and decision-making processes. The moves involve shuffling around high-level management so simplify the overall corporate structure, ahead of expected layoffs among Intel’s rank-and-file. Intel’s management isn’t giving any numbers, but analysts put overall pending layoff figures around ten percent of the company’s overall workforce, or about 10,000 employees. These cost-cutting moves are probably the only thing keeping investors from further eviscerating Intel’s stock price in the face of gloomy earnings outlooks for future quarters: Intel’s Core 2 Duo (aka Conroe and Merom) processors might tip the overall processor performance battle in Intel’s favor, but Intel’s battle with AMD is forcing the company to price the technology at painfully low levels

Showing 6 comments

John at 10:35pm 30th July 2006 One thing you all seem to be forgetting when considering cost is the price of the whole system vs just the processor cost. If the processor price is vastly different, e.g. two or three hundred dollars different, then you have a point about which company is scrambling. But for now, the company still scrambling is Intel..... inspite of the better benchmarks.... we'll have to wait and see how the market reacts.
Not So Sure at 6:47pm 26th July 2006 I don't think so Greg. If you're buying a new system in a month or so (far enough off that MB's aren't outrageously overpriced), I think you're more likely to look at either 6300 or maybe one model up than an AMD.

Well at least that's what I'd do.

OTOH, if you already have an AMD 939 board (like i do), there's no compelling reason to change platforms, unless you live on the bleeding edge.

In the end, the question is how long will it take for AMD to have competitive products in the $180-$230 range.

The 6300 comes close to an FX62. And there's no way that chip is dropping below $300.00.

I'm pulling for AMD, but I think this round goes to Intel.
domino360 at 1:20pm 24th July 2006 Greg: It's true what you said about AMD. But so did Intel. Who is acctually scrambling is AMD.

We'll see what happes to quad core...
Karl Viklund at 4:58am 24th July 2006 AMD did cut their prices today by alot. The model 5000+ will be priced like 3800+ was priced before and I guess 3800+ will be very very cheap. And when you think about it, 3800+ is screaming fast. I'm sitting on a 3000+ today and it's realy realy fast and it's enough for most things so I think this was very smart by AMD it will drive up the sales of AMD chips and today they announced they they will buy ATi so the future looks great and promesing. I will continue to build computers on the AMD chip but Intel looks great.
Pat at 9:59pm 23rd July 2006 The reason AMD is lowering prices is to compete with the upcoming Core 2 Duo, a processor that beats out AMD in almost every benchmark. Scramble? ....hardly.
Greg at 12:53pm 21st July 2006 I was just told that AMD has lowered the prices on a lot of their processors. I think Intel is going to have to scramble hard to get back on track.