When Intel finally announced that they had designed a new dual-core low-frequency processor, they discovered an awkward situation. All of the PC manufacturers had already placed orders from AMD.
Intel had thought that they will be able to get a lot of orders after designing and producing a better dual-core processor. This way, they will be able to suppress AMD in the low-end netbook market.
But Intel did not expect the market to be saturated. Although Intel's products have better performance, all the PC manufacturers did not place any orders.
Those PC manufacturers are smart. Now, everyone is in an alliance. Before AMD's netbooks are sold out, they will not sell their Intel netbooks. If not, how are they going to sell their AMD netbooks? Should they lower the price again?
If they lower the price again, AMD and the other hardware manufacturers will earn money according to their contracts. What will happen to the PC manufacturers? Although they will not lose money, the profit margin before taxes is less than 3%, and it is not worth it.
Just the value of their brand should not be so low!
Also, how many dual-core processors did AMD sell? More than 30 million!
Intel might not be able to fill this year's market, but those PC manufacturers will not order Intel's processors until their inventories exceed 80%.
The PC manufacturers still need to monitor the market. If the market is not as big as they expected, they will suffer losses if they stock up too much.
Furthermore, Intel's processor's performance is better than AMD's, but it is more expensive. Those who buy netbooks care about the price.
All the manufacturers are trying to lower the cost and prices. Who is willing to raise the price?
Furthermore, the 1GHZ CPU is enough. Why should they change to a 1.2 CPU?
The PC manufacturers will not buy or place any orders for the time being. They will wait for the AMD CPUs to be digested before ordering again. Maybe by then, the price of Intel's 1.2GHz CPU will have dropped.
While Intel is depressed, AMD is overjoyed. Almost all the PC manufacturers had ordered this CPU from them. Intel had given this dual-core 1GHZ CPU a discount on the surface to sell their other CPU models.
This discount is not a big deal, but it increased the orders for this CPU model and increased the sales of their other products. The PC manufacturers felt this order does not require them to fork out more money, and they can place their orders early.
Even if the orders are high, they do not mind. The higher the orders, the better the prices, and their cost will be lowered. Even if the CPU is not selling well, they can sell it later and use these products to attract consumers.
CHAO was doing this on purpose. It was a normal business competition method. They will give some reasonable terms to keep the customers in their hands. When their competitors produced better products, they found that the market was temporarily saturated.
AMD's orders are already booked until the end of the year, and those PC manufacturers will not place orders with Intel.
If it was a good CPU, it wouldn't matter if it was a little more. But this kind of CPU was only suitable for this kind of low-cost netbook. It couldn't be used in other products.
But AMD had underestimated Intel's determination. Intel quickly announced that they will lower the prices of their new low-frequency dual-core CPU.
However, AMD had underestimated Intel's determination. Intel quickly announced that they had lowered the price of their new low-frequency dual-core CPU. They had lowered the price before they even sold a single order!
Even if the prices are low and the profits are low, Intel will not make any money. They cannot watch AMD grow. They must ensure that they are still the leader in the processor industry.
As long as they maintained their market share, Intel would continue to be loved by consumers. It didn't matter even if they loved it out of habit.
This way, Intel can reduce AMD's market share, sales, and profits. This will slow down AMD's product development speed.
When Feng Yu felt this matter is difficult, AMD told him not to worry. They sued Intel again for dumping and unfair competition.
They said that Intel's new products, including the R&D and production costs, would be incurring losses if they were sold at the current price. This was clearly dumping!
DC and Intel were too familiar with each other, and they could roughly estimate the cost of both parties. Of course, Intel did not sell their products at a discount. AMD is only creating trouble for Intel.
Just like how CHAO's Velociraptor was selling much better than Intel's. Didn't Intel find an excuse to sue CHAO?
Now, AMD's impression to consumers and PC manufacturers is that they are better than Intel in terms of dual-core processors. Also, Intel does not object to dual-core or even multi-core processors being the future direction of CPUs.
That's why many software are optimized for dual-core processors. In this aspect, Chao Wei had the upper hand.
Chao Wei also increased his publicity on this point, constantly talking about his advantages. Now, Intel wants to surpass AMD in this aspect, and AMD will not agree.
Feng Yu is not good at these types of competitions. There are too many tricks in it. AMD had also said that this will only slow down Intel's sales. But in the end, they still need to produce a better CPU in order to win.
Intel is currently designing a low-voltage CPU using a more advanced product architecture. Once this product is completed, Intel will definitely lose to Intel in terms of netbook CPUs.
Netbooks have high requirements for low power consumption, and AMD wants to do their best in this aspect. Also, they want to reduce the size of the product. Lenovo Group wants their new model of netbooks to be thinner and lighter, and AMD must meet their customers' requirements.
To Feng Yu, the current netbooks are still not good enough. The netbooks in Feng Yu's previous life are much better than the current netbooks. They are lighter and thinner, and they can be sold for less than 1,000 RMB. That means the production cost is about 100 USD.
Now, the production cost is still more than 300 USD, and Feng Yu said there is still room for improvement.
There were requirements for hardware manufacturers, software manufacturers, and manufacturers. Only by working together could they control the cost to such a low level.
But some people say that the netbooks in Feng Yu's previous life that cost less than 1,000 RMB are just a tablet with a keyboard and cannot be considered a real laptop.
But Feng Yu is more interested in developing tablets, and this will be one of the most popular products in the future.
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