The head of MSI ensures that the time of cheap prices for AMD products has come to an end because of Ryzen.
Many of you are sure that you are looking forward to the AMD Ryzen 3000 Series. These new processors presented at Computex 2019 will be launched on the market on July 7. Above all, it is often noted that the prices of AMD products are usually cheaper than those of Intel. In the case of processors it is like that, but the CEO of MSI, Charles Chiang, says otherwise in terms of components that support these processors. He stresses that Lisa Su's company plans to stop being the economic alternative and that their prices will rise.
MSI says AMD will raise the price of its products
Historically, AMD has always been trying to follow Intel and NVIDIA where it could. The company had serious problems competing on performance, so they did so by lowering profit margins. Ryzen 3000 ends that stage and it will be Intel who will have to overtake its competitor in performance. This will lead AMD to raise the prices of its products to increase the profit margin. Intel will logically not lower prices and the position will be temporary. By the end of the year we should see 10nm Intel Core processors on the market.
“A lot of people ask me, what do you think about AMD today? I say that AMD today is a completely different company compared to two, three, five years ago. They have good technology and are there to put the highest specs with the reasonable prices.
But right now they say, “Hey, Charles, let's move on to commercialization. So let's sell motherboards with higher prices, motherboards with higher specifications and see what happens in the market. " So I don't think AMD is the same company that wants to sell at low cost "
Strategy change you may not like
This position of AMD, which is known to be superior, who will not be the slightest grace is the users. While the official prices of the new Ryzen are not crazy. Perhaps I refer more to the price of motherboards than to processors. We have seen a lot of motherboards at Computex, which point to being expensive.
AMD with Bulldozer was about to disappear and has endured as best it could. Polaris is not overly helpful either. Temperature and consumption problems for a fairly discreet performance, there is no help. Vega has been the certification that GCN had already expired and is that they have been stretching this architecture for seven years.
Navi and Zen could give the company a break, which may be considering raising prices. If Navi can compete with NVIDIA, they will be slightly cheaper, but not too much. It is logical that now the company wants to increase profit margin to increase the budget for research and development.
Source: TPU
