Intel will reduce server chip price to be more competitive against AMD

According to DigiTimes, it is now possible to find cheaper CPUs

A dispute for the server market with the growing participation of AMD in recent years has done with Intel rethink your strategies and lower the prices of your CPUs in that segment. According to DigiTimes, many processors can already be found with pprices below those suggested by Intel itself.

AMD has two disadvantages in this dispute, as pointed out by Tom’s Hardware. The company does not have own factories for the production of their Zen chips and has fewer resources than rival Intel. Even so, its participation in this segment has only increased, otherwise, Intel would not take this attitude.

In a recent fiscal presentation, AMD attributed its revenue growth to data center and server-oriented solutions such as Epyc processors and Instincts GPUs based on CDNA, mainly equipping super computers. Despite the rise in sales of Radeon graphics cards, this segment has suffered more from the scarcity of resources.

On the other hand, Intel has all the control of the production process of your chips, in addition to its economic condition that allows it to make decisions like this, even if it results in loss of profits. According to data from Puget Systems, a company/store specializing in computers for servers and data centers, AMD went from 5% in June 2020 to 60% in sales at this store in June this year.

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Segundo a Mercury Research, a AMD reached 9.5% share in the global server CPU market in the second quarter of this year. this gives 4% year-on-year increase, but 1% less compared to Q1 2021, with market share in 10.5% in the beginning of the year.

This market has an immediate requirement. It is not common for a company to wait for the supply in stock to return to normal, and it can use the rival’s solution to continue operating. However, switching platforms, requiring the entire infrastructure to be rebuilt, is not a simple task. So, in these cases, whoever has the solution in stock wins, and a more friendly price helps a lot too.


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Via: Tom’s Hardware

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