Intel is gutting prices on some Xeons to some customer but not others. What is being cut is interesting, how it is being done is what SemiAccurate finds most interesting.

Intel is in a bind on Xeon pricing to their biggest volume customers. Because of the FTC settlement, their hands are bound on what they can do for the biggest customers in terms of pricing. Below that tier however, all bets are off. Even more interestingly, it seems like Intel is making these cuts in a very clever way to keep any potential revenue dips off the books. Part of this is through the ‘how’, the other part is because Intel doesn’t seem to be touching the high volume lines yet. Lets dive into the details.

Note: The following is analysis for professional level subscribers only.

Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.

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Charlie Demerjian

Roving engine of chaos and snide remarks at SemiAccurate

Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate

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