When it comes to comparing the scale of the business of Intel and AMD, it is usually compared with the size of revenue, capitalization of companies or expenses on research and development. For all these indicators, the difference between Intel and AMD is a multiple, and sometimes an order of magnitude. The balance of power in the market shares occupied by companies has begun to change in recent years, in the retail segment in some regions the advantage is already on the side of AMD, which makes the confrontation between companies even more interesting. When Intel revealed pricing for Cascade Lake-X processors, multiple sources said the processor giant was faltering and the price wars were back.
Interestingly, at the end of the last quarter, AMD representatives themselves were of the opinion that Intel's price reactions were “pinpoint”, although it is still difficult to talk about large-scale dumping. It is important to understand that Cascade Lake-X class processors are sold in small quantities, forming no more than one percent of sales, and a sharp price cut for them cannot significantly shake Intel's financial position. Mass models of processors are another matter, it was the growth in the average price of their implementation in recent years that allowed Intel, if not to increase, then at least to maintain revenue at a stable level in the face of declining demand for personal computers. For Intel, things are complicated by the fact that its business is still heavily dependent on the PC market, and any shocks in this segment will lead the company to serious financial losses.
In this context, a slide from Intel's presentation for trading partners looks interesting, which became public at the suggestion of the channel . Intel is already measuring the financial consequences of the “price war” this year in specific amounts, according to the slide published by the source. In this situation, according to the ideologues of Intel, the company will be helped out both by the scale of the business and financial strength.
For example, if stimulus measures to counter the onslaught of a competitor and various kinds of discounts take about three billion US dollars out of Intel's budget, then against the backdrop of the scale of AMD's business, superiority will be felt even in this sense. AMD's net income for the whole of last year was $300 million. In other words, even with a loss of ten times what AMD earned, Intel will stand on its feet. True, it should be borne in mind that AMD's net profit by the end of the current year will certainly increase, but after all, Intel is not losing the last three billion dollars in this war.
Source: 3dnews.ru