i like how someone put it in a comment :
http://voodoopc.blogspot.com/2006/10/intel-kentsfield-general-observations.html Intel execs lacks the basic IQ. Pat Gelsinger made himself a total retard by typing "I hate AMD" on screen. It's despicable behaviour.
As I pointed out, Conroe fatally wounded Intel and Kentsfield will finish the job. AMD can sell a few hundred K8L now, but it doesn't do it. Why? Because AMD is smart . The few hundred K8Ls will make all other processors worth little. That's what Intel is doing here. With Conroe, AMD basically takes the mainstream market, 95% of Intel's processors are total junk because of Conroe. Now, with Kentsfield, Conroe will be reduced to a $150 chip and Pentium D will be sold at $65, and Athlon X2 will take the sweet spot.
The high end market is tiny. AMD only makes 10000 FX CPUs per quarter. The money is in the middle, and DELL is selling millions of X2 CPUs. I noticed that Alienware is hyping the 4x4 right now. Expect DELL to go 100% AMD by the end of 2008.
AMD is having a major capacity problem right now, once FAB36 finishes ramp by the end of year. Intel will be half dead.
and someone else commented:
People like to talk about price war, they forgot the most important factor in a price war is cost.
AMD's cost per chip is $50 below Intel. When AMD sells a CPU at $100, it laughs to the bank with $59 gross profit. When Intel sells a chip at $100, it loses $40. Just look at the head count, AMD has 10K people and is taking 25% of the mkt. Intel has 100K people.
AMD will soon cross 33% mkt share and approach 40%, leaving Intel and 55%. At that point, Intel will sustain $2.5 billion losses per quarter and will have to raise prices trying to stay afloat, but AMD is ramping up like crazy. If I were Hector Ruiz, I will sell chips at cost just to BK Intel.
and another
It's very simple, just try compute Intel's revenue due to the effect of Conroe. On one hand, you have about 10% Conroe chips selling at $200, on the other hand, you have 90% chips selling at an average of $80, most of them selling at $35 (celerons). Your ASP drop to about $90, a massive drop from the $150 Intel used to enjoy. The Pentium used to be a premium brand, now it's crap. Customers lost confidence in Intel, because they now know Intel was lying to them on Netbust and Hyperthreading.
DELL went AMD because of Conroe -- that should be good enough hurt.
You say Conroe will ramp up. However, by the time Conroe reaches 50% of Intel's production. AMD's K8L will frag Intel real good.