News Intel to leave entry-level chipset arena

http://www.bit-tech.net/news/2005/08/03/intel_entry-level_chipsets/

 

I don't think this is a bad idea. There are better, cheaper chips out there for entry-level, and currently people still buy intel just because it's intel. This frees up production runs, packaging, marketing, etc to devote to intel's true calling: the best multitasking, multithreaded computer in the industry. I do hope that this will push software designers to really start working with multithread more.

 

i don't see where they are going if they are leving their budget chipset designs. most of their cpu's and chipsets (n/s b) are sold to OEM's

 

They do sell a lot of OEMs, but a celeron chip makes very little profit vs. a P4, which also sells very well. Also, with the emergence of China as a world power, they can sell more high-end systems for business infrastructure out there. This way, they can devote their lines to what's most profitable.

Also, Via and the like have VERY good entry chipsets now, better than you can get from an intel system. Cheaper and lower power, too. Today's celerons are more powerful than one needs for a simple system, and not powerful enough for a real home/game system. So the market starts to erode....if I'm building an HTPC or an SFF, I won't build a cele, I'll buy an epia board. It's fanless, to boot. We're just starting to head to this market divide. Not there yet, but intel could be moving to preempt that.

Along that line, this could also be an incredibly shrewd business decision...could make AMD think they can now supply the entire market that intel is vacating, which means that they'll be busy making semprons instead of a64s. You can only produce so much, and there is still a clamor for the time being for the celeron/sempron end while these smaller manufacturers get their name taken seriously by the end users. They could be leaving AMD to fill a void that they can't do with their smaller production capacity without bringing up the cost of the chips (by basic supply/demand). And once the chips get more expensive, intel can reduce the cost of their p4 (or whatever) because they are only producing those. And then what would you choose...a sempron, or a full P4 with hyperthread for $20 more? That could really make an interesting shakeup in the market...relegating AMD to an entry chip manufacturer, or forcing that divide further between entry level and high end parts.