pricing on the new intel cpus

[CHOPS123]

Any ideas why the the e8400 is cheaper than the e6850??

[Zantheus]

Re: pricing on the new intel cpus

Any ideas why the the e8400 is cheaper than the e6850??

Cause only ppl like you are crazy enough to pay the ridiculous price u paid for the 6850 LOL

[CHOPS123]

[Zantheus]

lol

[juneau]

Re: pricing on the new intel cpus

Any ideas why the the e8400 is cheaper than the e6850??

Cause only ppl like you are crazy enough to pay the ridiculous price u paid for the 6850 LOL

Very true.

[CHOPS123]

Maybe there is something cheaper on the e8400......why would intel release a chip thats better for less money? Thats would just be a stupid for intel. If someone has some solid info on this please reply

[juneau]

Not really. Or else hardware would cost ?1000's. Nvidia released the 8800GT as the same price as the G80GTS.

[pigworthy]

Smaller Die size means more processors they can produce at once. Which can mean cheaper prices.

When they released the E6850 it was 1/3 the price of it's intel competition and the E6850 had a faster clock too.

[WalkinTarget]

Celeron 1200 dual core, for teh w... errr, nevermind ...

Next Intel price drops are scheduled for April 20, but thre are only about 4 chips that are dropping in price, so I will keep waiting on either an e2160/80. When you can get 3+ghz performance for $70, you start to wonder why you need to pay $200 for a similar chip with more cache that doesn't always mean significantly better performance.

I'm holding off on the 8400/8500 chips to see what the q9450 can do.

Q9450 soon to be out:
http://www.pcsuperdeals.com/ProductV...daa3f&Refer=11

Priced around $330 for the pre-order crowd.

[Duke{CLR}]

I hope to get the 9450 when it comes out.

[Hammy]

The most likely reasons for any processor to price out differently is demand.

Example 1:

The processor is popular with custom rig builders.

This is often due to the stability of configuration or the preferred "sponsored" cpu by the Motherboard (mobo) manufacturer. Mobo manufacturers will negotiate a rate with a custom rig manufacturer (Like Alienware used to be in the day) but stipulate what processors to use in order to minimize the risk in warranty bill-backs (a billbakc is when the board fails, and the manuf must credit the rig builder with the unit cost + service at a negotiated fee).

Example 2:

The process was made in limited volume at the foundry

CPU manufacturers are exactly like car manufacturers. They will build 10,000 units of one kind of Front Side Bus (FSB), 10,0000 of another FSB and so on.
Then they watch which one flies off the shelf.
Diminish production 1, Increase Production 2. It's kind of like when a new car comes out and they are all fully loaded. The next fabrication will omit certain items and watch the reaction in the marketplace. Make another adjustment, and watch.

Fortunately for Manufacturers of CPUs the only things they need to watch for are: Warranty Claims, Demand Generation, and Server/Mobo production.

Example 3:

The availability of the products they rely on

If Asus were to be the only Mobo manufacturer to have a Mobo or Mobo's that could fully exploit the true capacity of the product, and those Mobo's were suddenly in short supply- or worse (the foundry that makes the mobo's goes up in flames, and there is a backlog for 2 months- you will see those prices change accordingly.
Similarly, As more motherboards utilize the power of a recently introduced CPU, the price of the CPU goes up as the demand does because there just wont be enough processors to go around.

Example 4:

(My Favorite)
CPU's are like Oil & Gasoline-

If you make too many processors, they will sit on the shelf because the marketplace only has so much capacity. If you were to meet expected demand, you would end up shelfing the rest of your production capacity as the consumers willk soon develop a taste for additional power (a new CPU).
Many consumers will simply wait for a relevant change. For example: I have a Pentium4 3.0 that is at least 2 years old. I used to buy a new processor once a year, and I have no plans to buy another.

Example 5:

Vista, 64 bit applications, etc.

Today we are in the pre-wave. The new quad cores are out, and the developers are sitting there with new power in their hands. Suddenly we can build more efficient applications, which means we can fit more of our ideas into the application. This loosely translates into another era of technology innovation. If this does translate into a better environmnet, the price of CPUs will go up suddenly as people who want to use these applications go to the store to buy CPUs

Example 6:

HP, Dell, Sony, and others

When these guys decide on a standard, they often set the market. Intel and AMD simply assign a capacity to the foundry on product and whatever is left over is what we often see in the marketplace.
Dell orders 150,000 e6550's, and Sony does the same. Intel makes an extra 25,000, plus they add a touch to the step up (because we all know that people like me will always upgrade) and there you go. The market is set, price and all.



If I use numbers in these examples, they arent real. They are examples for the discussion. There are a few more reasons as to why prices of CPUs go up and down, such as promotion and such, but these are the most relevant reasons I have found in my research.