A few weeks ago there was a lot of talk about Intel dropping Xeon prices to be competitive but did they? SemiAccurate dug into the details and found the answers but it is a complex situation.
To start things out, we will point out that there are ways to cut prices that are meaningful and ways that are not meaningful. You can also announce a cut and simply not do it, but we don’t think Intel would go that route. All of this said, Intel really didn’t announce anything, it all started out with a Digitimes article that is summarized by an article on Tom’s Hardware. So what is really happening? Are the cuts real? Can Intel actually cut server prices? It is a very complex situation so lets dive in.
Note: The following is for professional and student level subscribers.
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.
Note: The following is analysis for professional level subscribers only.