Why is Intel so Expensive?

Discussion in 'General Hardware' started by Sebasman2, Jan 12, 2010.

  1. Sebasman2

    Sebasman2 Member Guru

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    I honestly just don't get it. My AMD quad core seems to preform just as well as any Intel out there...:puke2:
     
  2. Passion Fruit

    Passion Fruit Ancient Guru

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    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.
     
  3. FULMTL

    FULMTL Ancient Guru

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    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.
     
  4. deltatux

    deltatux Ancient Guru

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    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: Jan 12, 2010

  5. oVarsteer

    oVarsteer Member

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    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.
     
  6. Lord_Farken

    Lord_Farken Master Guru

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    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:pc1:
     
  7. kwak

    kwak Ancient Guru

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    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.
     
  8. oVarsteer

    oVarsteer Member

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    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)
     
  9. H83

    H83 Ancient Guru

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    Intel is more expensive because they are simply better! Of course this dons´t mean that AMD CPUs can´t 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 don´t complain about monopoly in the CPU market, because if Intel wanted, they could drop the prices of all their CPUs and simply squash AMD...
     
  10. alanm

    alanm Ancient Guru

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    +1

    i750 vs 965BE:

    http://www.anandtech.com/bench/default.aspx?p=109&p2=102

    p.s. I should note the i5-750 is about the same price as the 965be.
     
    Last edited: Jan 12, 2010

  11. Sebasman2

    Sebasman2 Member Guru

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    Okay, so you're saying Intel is better because they're better? :stewpid:

    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.
     
  12. vbetts

    vbetts Don Vincenzo Staff Member

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    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.
     
  13. FULMTL

    FULMTL Ancient Guru

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    all I gotta say is...BUDGET RIGS FTW!!!
     
  14. DementeD

    DementeD Master Guru

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    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..
     
  15. Sebasman2

    Sebasman2 Member Guru

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    Haha. Hell yes! :cheers:
    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...
     

  16. Sebasman2

    Sebasman2 Member Guru

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    For $150? :3eyes:
    Yeah, I got mine off of Newegg.
     
  17. Mannerheim

    Mannerheim Ancient Guru

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    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.
     
  18. Lord_Farken

    Lord_Farken Master Guru

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    you are wrong, with at stock my i7 can,t get that much performance
    just look at my review
    http://www.xtremesystems.org/forums/showthread.php?p=4196103#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:pc1: than me
     
  19. Sebasman2

    Sebasman2 Member Guru

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    :stewpid:

    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: Jan 13, 2010
  20. Sebasman2

    Sebasman2 Member Guru

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    I agree.
     

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