Analysys International Says Intel's Launch of Core Duo Processors Drives the Processor Market to a Turning Point

Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says that Intel's new launch of Core Duo Processors will drive the processor market to a turning point of competition.

Background Information:

Analysys International had forecast the coming and popularity of dual-core processors at the end of 2004. With the coming of the dual-core time, Intel and AMD fight against each other to strive hard for market share, verbal exchange, product campaign and price campaign came one after another. Intel launched new generation Core Duo Processor on July 27, 2006. This shows Intel has blown the clarion of counterattack, and also drives the competition between Intel and AMD into a key time.

Quick Analysis:

The Core Duo architecture features delivery of higher performance while consuming less power, smart cache, optimized memory access, digital media boost etc., which comply with Analysys International's forecast. Intel's starting the new Core Duo brand to replace its years-long Pentium Brand shows Intel's intention to emphasize the new phase of parallel computing time of processor with enforced performance as well as to rebuild its brand advantage.

Analysys International thinks that Intel will pay more attention to the price/performance ratio in its future product strategy planning since price factors will play a more important role in the future competition. Intel's action of reducing the price of some of the product has two purposes: one is to pave the road for its new products; another is to compete with its rival AMD and reduce market pressure. Intel's considerable price reductions will produce an adverse influence on AMD and finally lead the competition of both parties into a new phase.

At this turning point, Intel should continue to drive the industry with technical innovation while coming closer to the market with faster response to customer's demands and more flexible product strategy. Analysys International also points out that Intel also faces two challenges when promoting the new brand, one is how to combine business customers with enterprise applications; another is to coordinate with OEM vendors. And AMD should make the right reaction to face the challenge.

Analysys International's Findings:

The launch of Core Duo will intensify the competition between Intel and AMD, as well as drive the processor market to a turning point to determine both parties' fate. How to deal with the combination with industry application and the coordination with OEM vendors will be the key factors to determine this new architecture's success.

About Analysys International

Analysys International is the leading Internet based provider of business information about Technology, Media and Telecom industry in China. We provide data, information and advice to 50,000 clients worldwide representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Our clients include executives from companies as technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies.