Intel CPU Price Declines Help it Retain Value Edge

Earlier this week, AMD's introduction of the Athlon 64 X2 6000+ processor at the $464 suggested price point signaled the start of CPU price reductions in its midrange segment. But since that time, pre-order prices for the 6000+ have risen, not fallen; and meanwhile, street prices for Intel CPUs have declined a tick or two, according to Pricewatch.

As a result, based on our latest computer models, you're likely to be able to purchase a better performing processor from Intel than AMD for purchases of about $375 and higher. For lower purchases, AMD will offer the better value. AMD has made some gains in pushing that mark higher, though Intel prices have responded almost in kind. Last November, the crossover point was closer to $350.

Artificially inflated pre-order prices for the new 6000+ now average out at $565.64 - just over $100 over suggested "processor-in-a-box" (PIB) retail. What's more, using our computer model which projects an exponential curve for where both manufacturers' prices tend to fall, a hypothetical Intel processor with the same evaluated performance as AMD's 6000+ would sell for $435.70.

In the real world, Intel's Core 2 Duo E6600 continues to buck the price/performance trend. It's the closest performer in our test profile to the 6000+ - in fact, performing slightly better overall - although its street price has declined since Tuesday by $15, to $299.

Here's another way to look at it: Say you had exactly $500 to spend on a CPU. Whose product line would give you the best performance?

Using performance figures from the old single-core Pentium 4 520 as a benchmark, $500 (hypothetically) would buy you an Intel processor with 57.5% better performance overall than the P4 520. That same $500 would buy you an AMD processor with 54% better performance. It is a very slim lead for Intel now, though for the nonce, it's holding.