Intel decided to change its strategy in the server market in order to somehow cope with the pressure from AMD. The basis of the new strategy is simply to lower prices.
The source says Intel intends to flood the market with server CPUs at discounted prices instead of sticking to the recommended ones. That being said, Intel has more room to cut prices than AMD. We are talking about our own production facilities, and about cash reserves in general.
At one time, Intel said that it should not allow AMD to take 15-20% of the server market. This has not happened yet, but now AMD holds almost 10% of the market, and in just one last year has increased its position by 4 percentage points.
Whether this will help Intel, we will only be able to find out over time. In the meantime, we should expect more details on how much the company will cut prices.
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