
AMD Acknowledges Higher CPU Pricing Compared to Competitors
AMD's executive reveals the company charges more for its CPUs than its rivals, touting superior value as the reason behind the pricing strategy.
AMD has openly admitted to charging more for its CPUs compared to Intel, citing the added value for customers. During the Communicopia+ Technology Conference held by Goldman Sachs, Forrest Norrod, AMD’s Executive VP and GM of Data Center Solutions Business Unit, remarked, “We charge more for our CPUs than our competitor does, and the reason is because we’re giving superior value.”
Norrod did not specify Intel directly as the competitor but made it clear who he was referencing. He elaborated on AMD’s strategy by stating, “We’re giving performance, we’re giving reliability, we’re giving things that allow us to charge for that technology and for the customers to feel good about the price that they’re paying.”
Additionally, Norrod highlighted AMD’s impressive growth in server CPU market share, which stands at 41%, up from nearly zero seven years ago. This growth trajectory is expected to continue as the company enhances its offerings in the CPU space.
In another notable remark, Norrod conveyed that while AMD might not dominate in desktop CPUs like it does in server CPUs, the company remains confident in the value it provides to customers, especially with its newer products.