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Why is Intel so Expensive?
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Sebasman2
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Default Why is Intel so Expensive? - 01-12-2010, 07:11 | posts: 124 | Location: Gilbert, AZ

I honestly just don't get it. My AMD quad core seems to preform just as well as any Intel out there...
   
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Default 01-12-2010, 07:18 | posts: 5,951 | Location: Middlesbrough, England

Well, that's a bit one sided, but you are right from a certain point of view.

For gaming, the Phenom II's are excellent, but for encoding and other CPU intensive tasks, that's where Intel dominate, and because gamers are a massive minority, Intel is more popular.
   
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Default 01-12-2010, 07:36 | posts: 6,558 | Location: Portland, Oregon

People gotta eat.
But really now, Intels are more expensive because they are faster (speaking of the i7's here). Your AMD seems fine because its more than good enough to do anything. Any faster just for gaming isnt really necessary.

It also depeneds on where you shop. Over here in TX, you could go to a Micro Center and pick up an i5 750 for $150 (abnormal normal price) of which I would recommend over a Phenom II 965 because of price alone...Hell I almost made another Intel rig because of it, but wasnt looking to spend that much in total.

Wonder if Intel will ever start making cheaper quad cores like AMD.
   
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Default 01-12-2010, 07:52 | posts: 19,041 | Location: Toronto, Canada

It depends on your location really. In places like up here in Canada, a Core i7 920 costs somewhere in the neighbourhood of C$300 (about US$280-290). The Core i5 750 costs about C$220 (or US$200-$210).

Intel has been historically more expensive due to a larger profit margin and the fact you're also paying for a brand name. The Core i5 750 and the Phenom II 955BE (C$185) perform around the same. The $35 difference is because of the fact that the Intel processor is slightly better or the fact that AMD is willing to lower their profit margins just to take your business away from Intel. This is known as undercutting the competition. This is why competition is crucial. Without competition, there's really no need to innovate and undercut the competition. Therefore, less reasons to lower the prices.

Historically, Intel is meant for the consumers who want the absolute powerhouse no matter how much it'll cost them (as evident in their $1000 Core i7 965/975s). While AMD (and now ATi) has been historically meant for the budget conscious consumer who wants the most performance out of the dollar value they're paying (also known as bang-per-buck). That's where AMD strives. Instead of attacking the minority highend market where the Core i7 is. AMD knows they can't compete with Intel in that space, so they'll attack the bulk of the market which is the mainstream/performance market segments. AMD also has a leg up in the budget market as well.

There's really no single reason why Intel processors are more expensive than AMDs, it just happens to be like that.

Since my family highly values bang-per-buck, all our desktops are all powered by AMD because Intel hasn't been able to provide the best bang per buck and we're not looking for the best possible rig. You can see this mode of thinking when you're reading my posts and my rig quotations. It always emphasizes the best bang per buck unless the OP states otherwise (then I try persuade them to think again, if that fails, then I go crazy on my quotations)

deltatux

Last edited by deltatux; 01-12-2010 at 07:56.
   
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Default 01-12-2010, 09:29 | posts: 15 | Location: Brisbane, Australia

Also have you ever seen an AMD advertisement on tv?

I haven't, don't get me wrong they could have them but intel seems to stick there logo and little chime on the end of lots of Dell etc ads not to mention plenty of pure intel ads. As we all know, marketing costs money.
   
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Default 01-12-2010, 10:04 | posts: 357 | Location: Baghdad ,Iraq /home PR

Quote:
Originally Posted by Sebasman2 View Post
I honestly just don't get it. My AMD quad core seems to preform just as well as any Intel out there...
is simple monopoly and expensive to produce
along the no other company making similar tech
like i7 they set the price
when adm put ou the new 32n cast cpus the intel price will drop
and is not for sure,just look now at the graphic's card
gtx200 series price haven't drop even when ati put out better one cheaper ,the are not losing money ,they still sell good
and with that cpu at 4.5 you never get the same performance of i7 at same speed
read about how they work inside
   
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Default 01-12-2010, 10:36 | posts: 6,569 | Location: Galactic Sector QQ7 Active J Gamma

Quote:
Originally Posted by oVarsteer View Post
Also have you ever seen an AMD advertisement on tv?

I haven't, don't get me wrong they could have them but intel seems to stick there logo and little chime on the end of lots of Dell etc ads not to mention plenty of pure intel ads. As we all know, marketing costs money.
yes, during formula 1 races:
http://img.hexus.net/v2/features/ferrari/DSC_0903.JPG

you do have a point, intel spends much more in marketing. I dont think thats the main reason though. the expensive intel procs are just faster in a lot of heavy workloads.
for games, any difference is negligible, so a pure gaming pc is best off with amd imo.
   
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oVarsteer
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Default 01-12-2010, 10:55 | posts: 15 | Location: Brisbane, Australia

yeah its not the main reason but probably one of the contributing factors, same theory applies with pharmaceuticals (brand name vs generic, same medical formula just paying more for the brand)
   
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Default 01-12-2010, 11:09 | posts: 1,120 | Location: Mars

Intel is more expensive because they are simply better! Of course this donsīt mean that AMD CPUs canīt be as good as Intel, but in most cases, Intel just wipes the floor with AMD and so they ask for a premium for that extra performance. Another reason that i believe Intel is more expensive than AMD is because Intel wants AMD to continue to stick around so people donīt complain about monopoly in the CPU market, because if Intel wanted, they could drop the prices of all their CPUs and simply squash AMD...
   
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Default 01-12-2010, 11:59 | posts: 5,354

Quote:
Originally Posted by H83 View Post
Intel is more expensive because they are simply better! Of course this donsīt mean that AMD CPUs canīt be as good as Intel, but in most cases, Intel just wipes the floor with AMD and so they ask for a premium for that extra performance.
+1

i750 vs 965BE:

http://www.anandtech.com/bench/defau...x?p=109&p2=102

p.s. I should note the i5-750 is about the same price as the 965be.

Last edited by alanm; 01-12-2010 at 12:23.
   
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Sebasman2
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Default 01-12-2010, 23:43 | posts: 124 | Location: Gilbert, AZ

Quote:
Originally Posted by H83 View Post
Intel is more expensive because they are simply better! Of course this donsīt mean that AMD CPUs canīt be as good as Intel, but in most cases, Intel just wipes the floor with AMD and so they ask for a premium for that extra performance. Another reason that i believe Intel is more expensive than AMD is because Intel wants AMD to continue to stick around so people donīt complain about monopoly in the CPU market, because if Intel wanted, they could drop the prices of all their CPUs and simply squash AMD...
Okay, so you're saying Intel is better because they're better?

Quote:
Originally Posted by Passion Fruit View Post
Well, that's a bit one sided, but you are right from a certain point of view.

For gaming, the Phenom II's are excellent, but for encoding and other CPU intensive tasks, that's where Intel dominate, and because gamers are a massive minority, Intel is more popular.
Well, I had a Pentium dual core in my previous rig, and that seemed to function well for non-graphic tasks, but then again, I can't exactly compare the two. Thank you for summarizing.
   
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Default 01-12-2010, 23:47 | posts: 10,369 | Location: Toledo Ohio

Intel has cpu's that range in all fields, that have their own source of power basically, and how's it done.

Lower market- Dual cores that are decent.
Mid-Dual cores with high fsb, cache, and quad cores with cut cache
High-Threads, fsb, clock speed, cache, etc.

It's just their game. Amd has made quad cores and tri cores cheap, because they strip everything out of it except the actual core. No l3 cache, low cache to begin with, and lower clocked speeds. Where as, Intel really pushes in the high end market, and a lot of people are still willing to pay over $150 for a dual core from Intel.
   
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Default 01-13-2010, 03:14 | posts: 6,558 | Location: Portland, Oregon

all I gotta say is...BUDGET RIGS FTW!!!
   
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Default 01-13-2010, 03:33 | posts: 852 | Location: Tampa, Florida

simple answer is cause its the fastest...when amd was kickin intels arse..their prices increased a lot and you were getting cpu's that between both that were costing in the same neighborhood of each other...same thing happens with gpu's..
   
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Sebasman2
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Talking 01-13-2010, 03:45 | posts: 124 | Location: Gilbert, AZ

Quote:
Originally Posted by FULMTL View Post
all I gotta say is...BUDGET RIGS FTW!!!
Haha. Hell yes!
I love how I can build a ~$700 rig that matches some of the best rigs out there in gaming performance. Well, not my current one... But once I get my second 9800 GTX+, perhaps so...
   
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Sebasman2
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Default 01-13-2010, 03:50 | posts: 124 | Location: Gilbert, AZ

Quote:
Originally Posted by FULMTL View Post
People gotta eat.
But really now, Intels are more expensive because they are faster (speaking of the i7's here). Your AMD seems fine because its more than good enough to do anything. Any faster just for gaming isnt really necessary.

It also depeneds on where you shop. Over here in TX, you could go to a Micro Center and pick up an i5 750 for $150 (abnormal normal price) of which I would recommend over a Phenom II 965 because of price alone...Hell I almost made another Intel rig because of it, but wasnt looking to spend that much in total.

Wonder if Intel will ever start making cheaper quad cores like AMD.
For $150?
Yeah, I got mine off of Newegg.
   
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Default 01-13-2010, 06:34 | posts: 4,563 | Location: Finland / Helsinki

High end cpus has no real difference in gaming....
high res and difference is 0-1fps max

Its just stupid to cost extra from a name.


   
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Lord_Farken
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Default 01-13-2010, 07:13 | posts: 357 | Location: Baghdad ,Iraq /home PR

Quote:
Originally Posted by Mannerheim View Post
High end cpus has no real difference in gaming....
high res and difference is 0-1fps max

Its just stupid to cost extra from a name.
you are wrong, with at stock my i7 can,t get that much performance
just look at my review
http://www.xtremesystems.org/forums/...03#post4196103

yesterday a newbie with a quad-core ask me why he can get same fps
with same card
I told him that need to upgrade
so hes going to do it, cuz he haft way in performance than me
   
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Sebasman2
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Angry 01-13-2010, 12:26 | posts: 124 | Location: Gilbert, AZ

Quote:
Originally Posted by Lord_Farken View Post
you are wrong, with at stock my i7 can,t get that much performance
just look at my review
http://www.xtremesystems.org/forums/...03#post4196103

yesterday a newbie with a quad-core ask me why he can get same fps
with same card
I told him that need to upgrade
so hes going to do it, cuz he haft way in performance than me


Your review isn't comparing ANYTHING in regard to processors. You got a new cooler for your card, and you're comparing it to your old one. That doesn't mean that he's wrong, or that the newbie needs to upgrade his processor. What was the newbie's clock speed? You do realize that clock can be a large factor, right?

Last edited by Sebasman2; 01-13-2010 at 12:28.
   
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Sebasman2
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Default 01-13-2010, 12:49 | posts: 124 | Location: Gilbert, AZ

Quote:
Originally Posted by Mannerheim View Post
High end cpus has no real difference in gaming....
high res and difference is 0-1fps max

Its just stupid to cost extra from a name.
I agree.
   
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H83
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Default 01-13-2010, 15:04 | posts: 1,120 | Location: Mars

[QUOTE=Sebasman2;3419140]Okay, so you're saying Intel is better because they're better?


This article explains why Intel CPUs are better and more expensive than the CPUs from AMD...

http://www.legionhardware.com/document.php?id=857

If after this, you still donīt understand why Intel is more expensive, then i give up...
   
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Lord_Farken
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Default 01-13-2010, 15:22 | posts: 357 | Location: Baghdad ,Iraq /home PR

Quote:
Originally Posted by Sebasman2 View Post


Your review isn't comparing ANYTHING in regard to processors. You got a new cooler for your card, and you're comparing it to your old one. That doesn't mean that he's wrong, or that the newbie needs to upgrade his processor. What was the newbie's clock speed? You do realize that clock can be a large factor, right?
whatever
bottom line amd cpus suck compare to new intels ones
get a benchmark on ADM doing better and I shut up

Last edited by Lord_Farken; 01-13-2010 at 15:25.
   
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Default 01-13-2010, 16:04 | posts: 111

Quote:
Originally Posted by oVarsteer View Post
Also have you ever seen an AMD advertisement on tv?

I haven't, don't get me wrong they could have them but intel seems to stick there logo and little chime on the end of lots of Dell etc ads not to mention plenty of pure intel ads. As we all know, marketing costs money.
+11.
Intel also has a monopoly over AMD,and "big blue" has tried to kill them off many times before. Maybe if AMD had a ad or two people might recognize them better. AMD made the first true quad core cpu,intel just stuck 4 chips together,compared to the amd it seemed crude.

Last edited by Eaglewolf4237; 01-13-2010 at 16:20.
   
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Default 01-13-2010, 17:36 | posts: 5,354

Quote:
Originally Posted by Eaglewolf4237 View Post
+11.
Intel also has a monopoly over AMD,and "big blue" has tried to kill them off many times before. Maybe if AMD had a ad or two people might recognize them better. AMD made the first true quad core cpu,intel just stuck 4 chips together,compared to the amd it seemed crude.
Yeah, but kinda funny how AMDs "true quad core", Barcelona, still had its arse handed to it on a plate by Intels 'non-true' quads. So what was the point?
   
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Default 01-13-2010, 17:41 | posts: 19,041 | Location: Toronto, Canada

Quote:
Originally Posted by Eaglewolf4237 View Post
+11.
Intel also has a monopoly over AMD,and "big blue" has tried to kill them off many times before. Maybe if AMD had a ad or two people might recognize them better. AMD made the first true quad core cpu,intel just stuck 4 chips together,compared to the amd it seemed crude.
Last check IBM is an AMD partner. Maybe your big blue is referring to Intel? Try not to because around the industry, Big Blue is IBM and not Intel, can get confusing.

deltatux
   
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