AMD Ryzen 7950X, 7900X, 7700X and 7600X Zen4 processors pricing at Canada etailer
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Maddness
Catspaw
I don't think the price matters much (not the launch price at least).
Prices will almost always (*cough* crypto mining *cough*) be relevant to performance.
If the price is "too high", they wont be selling enough and will lower prices to "reasonable prices".
It is relative to the performance of other competing products (not just intel but also previous gen).
The reason Ryzen 5000 was expensive was because it was really good compared to ryzen 3000 and even intel.
The reason everyone and their mother is expecting GPUs to drop now in prices is because we understand that both AMD and nVidia have a large stock to get rid off and both are about ready to launch new products.
I know a lot of people are saying that nVidia and AMD can "stall" their launches of the new GPUs to move old stock of 6000 / 3000 series (obviously AMD is twice better 😀), but remember: They have to release quarterly earnings.
They don't especially want to show a quarter with extremely low income from gaming GPUs because "They are stalling". They want to move chips and make more chips and sale those chips again. Not speculate on the price of the chips they already made (especially when gamers are already used to waiting for price drops).
However, My understanding is that AIB partners are the ones that got burned the worst with the crypto bubble, and these guys already have a rather slim margin as it is on GPUs.
It is an interesting situation to say the least.
So in CPUs, I expect something similar. If there is a lot of demand (Honestly, i don't see it. Ryzen 5000 was really good value, I expect people to skip 7000 considering how it looks like this 5nm architecure / node is not bringing any revolutionary performance increase.... that we know of as of today), maybe price will follow.
tunejunky
~AngusHades~
tunejunky
metagamer
Horus-Anhur
fantaskarsef
~AngusHades~
And...So, again it has nothing to do with what kind of industry it is. A company that manufactures a product, whatever it is, will sell the products at a loss even if it costs more to manufacture it / produce it, as it can't compete in the market. The gentleman above that you quoted is right about the pricing. AMD priced Zen3 higher because it was a better product than intel at the time.
Astyanax
Horus-Anhur
cucaulay malkin
Astyanax
Horus-Anhur
wavetrex
Keller is probably an alien from outer space, or a time traveler ... in any of these cases, his mission is to advance human technology to the point of being ready for integration in the Galactic Federation.
tunejunky
cucaulay malkin
tunejunky
cucaulay malkin
Catspaw
I think that manufacturing costs are taken into account when pricing a product, but it is not the defining factor.
I would say that manufacturing cost is taken far more prominently into account when deciding if you should launch/manufacture that product in the first place.
Considering that the second decision is made years in advance, what usually happens is this:
1. You try to make a good product and a competitive price.
2. You get an engineering sample and test how good it is.
3. You compare it to current products and extrapolate improvements over your own products and the competition products 3 - 5 years into the future.
4. If it looks good, you secure fab production and try to improve the design until production beings (even something after, thats why we have different revisions of the same products)
5. As fab yield improves, you can price your products more aggressively, greatly increased by chiplet design (this is why 16 core CPUs are so much more expensive per core than 12 core CPUs, because 2 times 8 cores per chiplet means a 0% defect chiplet, 12 cores are 2 times 8 cores with two cores per chiplet not working properly, thus disabled).
6. You finally have your product out and... it turns out Intel has a better cheaper CPU. So, does your manufacturing price matter or what matters is to sell those chips you already have made, paid for and are gonna be a cost only on your balance sheet if you keep them? (Btw, this almost never happens. I think only companies like Sennhesier and Porsche would operate at a loss for a long time in some departments just because they knew they would recoup that loss in other ways).
Ryzen 5000 had 3 advantages over Intel:
1. Motherboard compatibility (with even 300 series nowdays). This basicly cut from the cost of upgrade the motherboard, another windows key and sometimes even RAM. Considering that, Ryzen was SO MUCH CHEAPER than Intel.
2. Chiplet design (better yield due to maturity of the architecture, the chiplet design and the infinity fabric, remember that Ryzen 1000 was rather poor in gaming due to early infinity fabric being quite new).
3. Competitive performance.