Stacy Rasgon is spot on, as usual.
http://www.barrons.com/articles/intel-first-signs-of-amds-impact-asks-bernstein-1502803807
2 replies (most recent on top)
X86 market is low single digit growth, impossible for intel to grow faster in profits or revenue with AMD shipping viable volume at lower price.
The x86 is all on 14nm which while still below historical prior generation yields is like printing money just less than planned with the big cores. But with AMD shipping, lowered prices, and slow growth and 10nm ouch ouch ouch is all I got to say!
Cutting prices is worst idea ever.
AMD can cause only $1B or $2B directly (since part of their other revenue comes from embedded, gaming and graphics).
But cutting price even by 1% will cause something around $5B annually. Problem is that some SKUs are 50% cheaper!!! For example 8 core goes from $1200 down to $600 while manufacturing price increased (caused by bigger die size). It is shame, these processors was designed to sell at different prices but now they are almost at manufacturing prices.