A common question appears in people’s minds: Why are AMD processors so cheap? I have researched this topic a little bit, and here I will explain the things to you.
When it comes to processors, then Intel dominates the top portion, but today things have changed a lot, and the AMD brand evolved so much in the past few years, and currently, they are efficiently competing with the Intel processors.
So, Why AMD Processors are So Cheap?
Trust building is one of the significant cause abut why AMD CPUs are so cheaper; the AMD Ryzen processors are new in the market, and to gain the user’s trust, they are providing the CPUs at the most affordable costs, besides that AMD collaborates with the TSMC company to build the chipsets and because of that AMD can provide the CPUs at meager prices.
To know more about why AMD CPUs are available at the cheapest costs, keep reading this article to the end.
Why is Ryzen Cheaper than Intels Processors?
Several reasons make an impact on the price, and here I have explained all of those reasons-
New in the Market
There is no doubt that Intel ruins the world of the processor when it comes to CPU brands. Although AMD is an ancient and famous brand, AMD launched the Ryzen processors a few years ago, somewhere around 2017.
As Ryzen lately enters the market, many people are still more comfortable with the Intels product.
Currently, the only way to get success for Ryzen is by providing some extra features that Intel is not providing.
And to gain popularity in the market, AMD is taking the lower prices from the users, and they are thinking that even if their margins are lower, the quantity of the CPUs being sold should make up for the differences.
Manufacturing is another fundamental reason AMD CPUs are available within a low budget. From a technical subpoint, the Ryzen chip can be cheaper to manufacture due to its use of the “Infinity Fabric Technology,” allowing the AMD to make even better high core count CPUs with modules of higher cores.
On the other hand, the Infinity Fabric Technology is not used in the Intels processors; therefore, AMD CPUs are available at meager prices.
Generating Maximum Sales
AMD has evolved a lot as a processor brand, but if you check out the market in terms of selling, you will notice that Intels sells 60% CPU while AMD sells 40% CPU.
So, it is pretty clear that Intel is leading the market and capturing the market; AMD defines much lower prices for its products.
Popularity Among the Gamers
Many people buy the high powerful CPUs to improve their gaming performances. If you check out the Ryzen 9 CPUs, which contain 16 CPU cores, are available on Amazon somewhere around 300 Dollars.
While at the same time, if you look out the Intl Core i9 processors, which come with 16 CPU cores, they have a much higher price on Amazon, somewhere around 500 dollars.
To make its brand popular to gamers, AMD provides the same specifications-based CPUs at much lesser prices than Intel.
Also Read: Do AMD Laptops have Thunderbolt?
AMD is not providing the CPUs at the lowest price; instead, we can also say that Intels takes much more from its users for the Processors.
If you lookout the latest Intel Core i9 processors, you will notice that it charges more than 150 to 200 $ than the Ryzen 9 processors, although both the CPUs provide almost similar features.
So, we can say that AMD CPUs are available in the market within accurate pricing, but that is not the thing with Intel’s CPUs.
Separate Business Model
The business models of Intel and AMD are entirely different from each other, where Intel develops its processors and its chipset; on the other hand, AMD collaborates with several companies.
Intel built all the things like design, fabrications, implementation for themselves, but that is not the case with AMD; they collaborate with several companies, for instance, they tie-up with the TSMC(Taiwan Semiconductor Manufacturing Company), who built the chipsets for the AMD and AMD mainly focuses on the designing of the components.
So, this separate business model saves a lot of money for AMD, and therefore, they can build the processors at the lowest prices.
If you researched a little bit, you know that Intel spent too much money on brand promotion of their products, and that budget impacts their processor’s prices.
However, AMD also does brand promotion, but not as Intel does, and therefore there is not too much budget for the brand promotion of AMD products.
Also Read: Is Ryzen 9 Good for Gaming?
Intel has been the market leader for several years, and initially, the AMD processors did not perform well compared to the Intel processors.
So, it has become difficult for AMD manufacturers to build trust.
Formerly, 10 to 15 years ago, when a user went to buy a new computer, the seller showed him two computers, one based on an Intel processor. In contrast, another is based on an AMD processor, and both are available at the same price; at this point, the user buys the Intel products because of their brand value.
Later, AMD realized this thing, and they launched a new processors brand name called Ryzen somewhere around 2017 and set significantly fewer prices for those products.
CPU Building Process
The CPU manufacturing process is entirely different for both the CPUs, brands. And while building the CPU, some defects may occur in the silicon wafers.
In the Intels systems, the defective wafers are not used, and they throw away these bad things, which impacts cost.
That’s not the case with AMD products; if some defective wafers were identified, AMD combined them with the lowered products, making prices cheaper.
As mentioned above, AMD collaborates with the TSMC brand, a Taiwan-based company whose production costs are less.
On the other hand, Intel is based in the United States, whose production costs are much higher than the AMD.
AMD is adopting the new methodologies of the new processor designing process. They can shift much of their processors to the 7nm technology, which costs much less than the old technologies.
Where Intel is unable to adopt these methodologies.
These are significant reasons AMD CPUs are available at the lowest price compared to the Intel processor.
Also Read: Is ryzen 5 Good for Gaming?
Now, you already know why AMD processors are available at the cheapest costs, and I want to add that cheap does not indicate that the product is terrible; AMD is producing excellent CPUs in the market, which is competing with Intel CPUs.