It is about time. After Advanced Micro Devices (AMD) launched high-end Ryzen 7 processes in the last quarter, followed up with a mainstream Ryzen 5 and will release EPYC server processors, Intel (INTC) is responding.
For the desktop market, Intel will target the high-end with Core X processors. The core count matches that of AMD’s offering as both companies target content creators and gamers. For example, the i9 Extreme has 18 cores and 36 threads. The mainstream i5 processors start at a cost of $242 U.S. while the higher-end CPUs cost $1,699.
AMD will respond with "Threadripper," a CPU with more cores set for launch later this year.
In the near-term, AMD’s Ryzen 3 and 5, available on the top five PC manufacturers, could lift its market share. Intel’s strategy involves targeting the middle and high-end markets, an area that is more profitable. For the time being, neither company needs to cut chip prices.
This would hurt both firms. Profit margin would fall and neither company would gain market share.
Intel has an edge in the short-term. Due to the years of availability of Intel CPUs, software is optimized to perform better on Intel. As developers adapt AMD Ryzen, the software development advantage will end. That could prove troubling for Intel.
Tech Insider
