Intel is plotting a chart and foresees a decline in its premium quality CPU prices for remainder of the year. The decline is subjected to multifarious reasons and AMD’s Ryzen launch could be one ground reason regardless of other marketing ups and downs.
In past, AMD’s chipset were considered cheaper but inefficient comparatively to Intel’s premium chipsets. That being said, a decade later, AMD has now completely came up with new architecture for its CPU lineup and it has the potential to provide the exact same power an Intel chip gives but in less price.
Intel CEO Brian Krzanich mentions that “market dynamics are the reason Intel expects fall in CPU prices for remainder of the year”. Intel is earning maximum from its CPUs across all platforms that includes, laptops, notebooks, tablets and other low-powered devices. Since AMD’s Ryzen has currently launched for PC hardware only, it has already worried the sale charts of Intel CPUs. Moreover, as according to Intel’s CEO, if Ryzen CPU lineup goes miniature for laptops and other low-powered devices or low-end PCs, this will bring market dynamics to whole other level.
As Principal analyst at Tirias Research, Jim McGregor said:
AMD is offering a competitive part, and their price is significantly lower than Intel’s. This is more about bringing gaming systems to lower prices. Competition is always good, and Intel is certainly feeling the pressure from AMD.
The full scale impact of AMD’s Ryzen cannot be predicted this early. Intel could counter Ryzen by introducing next generation of CPU lineup, which will be more likely 10 percent faster and efficient than the current 7th Generation a.k.a Kaby Lake.
One thing is for sure at this moment, the lower priced Ryzen CPUs with similar performance to Intel’s CPUs is pushing a lot of pressure. Intel can counter the price pressure by revising the price point of its chipsets. This way, PC users can upgrade easily to latest generation without ditching Intel brand and switching to AMD’s Ryzen.