The commercial implications of Core i7

by Scott Bicheno on 4 November 2008, 11:30

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD)

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Deneb

If you buy a system based on the current generation of Intel CPUs you won't be able to upgrade to Core i7 without getting a new motherboard and, most probably new memory too. McNaughton insisted that AMD systems have are upgradable to the next generation of AMD desktop processors, which are codenamed Deneb and due early next year.

Starting at $284, Core i7 is positioned well above any market segment AMD is capable of competing in right now so, on one level, the launch only affects the CPU market by adding another product to it. Indirectly, however, it allows Intel to cut the prices of its older products yet further and put even more price pressure on AMD.

Additionally let's not forget that Intel is primarily competing with itself with this launch. Why would anyone spend more than $200 on a previous generation Intel CPU now?

All this puts no small amount of pressure the launch of AMD's next generation 45nm CPU architectures - codenamed ''Shanghai' for servers and workstation and 'Deneb' for mainstream desktop - which is expected to be unveiled this month.

HEXUS will be at the launch event and while initially the focus will be on its new 'Shanghai' based AMD Opteron for server, we should at least be able to report on AMD's expectations for 'Deneb'.

So by the end of this month the CPU market will have even more choice than ever, which should lead to even better value for consumers. Regarding the Intel/AMD battle - unless AMD pulls something pretty special out of the hat with Shanghai/Deneb, it looks like this will continue to be waged at the middle and lower ends of the market.