Why are cpus and gpus different prices?

[slayerming2]

Hey guys

 

This may seem like a really stupid question, but I was wondering if someone could help alleviate my confusion. So long story short, my managerial economics teacher was giving a example of how Intel was able to give different groups of people different things that they want. Saying that a regular person just needs an I3 while and an architect would need an i7. Than he said that intel purposely weakens the cpu too an i3 instead of an i7. So basically what I'm asking is why is an i7 more expensive than an i3?(Besides RAD) He was comparing this too what comcast and the other internet companies would do if they killed net neutrality. Anyone wana provide some insight?

[Tmh85]

Because Intel likes to make money?

[79wjd]

Hey guys

 

This may seem like a really stupid question, but I was wondering if someone could help alleviate my confusion. So long story short, my managerial economics teacher was giving a example of how Intel was able to give different groups of people different things that they want. Saying that a regular person just needs an I3 while and an architect would need an i7. Than he said that intel purposely weakens the cpu too an i3 instead of an i7. So basically what I'm asking is why is an i7 more expensive than an i3?(Besides RAD) He was comparing this too what comcast and the other internet companies would do if they killed net neutrality. Anyone wana provide some insight?

Because an i7 isn't the same chip as an i3. You need a better piece of silicon to make an i7 chip. Basically, a perfect chip becomes a high end i7. If the chip isn't perfect -- If hyperthreading doesn't work as it should then it becomes an i5...say one of the cores isn't up to snuff, then it becomes and i3. 

 

On the other hand, there are graphics, which are the exact same chip (GTX 780Ti vs. GTX 780), in which case they purposely dumb down the 780Tis in order to sell two different cards thereby gaining money from each market (the $500 market and the $700 market -- original stabilized pricing). Each tier of Intel CPUs also work on the same idea...and i5 4670k is the same chip as an i5 4450, its just the 4670k is a better quality chip. 

[Katsu-K1L]

Because i3 has a 3 in it and i7 has a seven and 7 is moar big den da 3

[nuclear465]

More performance costs more money, that simple...

[i_build_nanosuits]

Hey guys

 

This may seem like a really stupid question, but I was wondering if someone could help alleviate my confusion. So long story short, my managerial economics teacher was giving a example of how Intel was able to give different groups of people different things that they want. Saying that a regular person just needs an I3 while and an architect would need an i7. Than he said that intel purposely weakens the cpu too an i3 instead of an i7. So basically what I'm asking is why is an i7 more expensive than an i3?(Besides RAD) He was comparing this too what comcast and the other internet companies would do if they killed net neutrality. Anyone wana provide some insight?

Intel produce CPU's...some of them are perfectly functionnal and some of them have parts of their cores that won't work as they should...they sell the perfect chip as core i7 quad core with hyperthteading...sometimes the hyperthreading module is defecive but all 4 cores are active so they sell those as core i5 and sometimes they have a core that is not active they sell those as i3 IF hyperthreading module is working and if not they sell them as pentium or celeron dual core no hyperthreading...hope this help.

AMD is doing the same with the FX 8 core 6 core or 4 core...when modules are inactive they go to a lower stack in the chain.

Hope this help.

EDIT: it can also go the other way with binning, where the best chips are cherry picked to be a better out of the box product aimed for enthousiasts like the extreme edition (x) intel CPU's or the AMD FX-9590 or FX-9370 for example who are cherry picked factory overclocked processors.

[xBlizzDevious]

I'm pretty sure that there's a binning process where they find what CPU specs each piece of silicon could actually reach. So they label one that can't handle the lowest end i5 spec as the highest end i3 that it can... I guess? Or something like that. I'm no engineer.

[Juganog]

there is more on an i7 meaning higher production cost... idk...

[Guest Kloaked]

Why are monitors and televisions different prices?

[Vacsol]

I think a better example would be RAM.

 

all DDR3 memory is made the same way, but they sort the chips to find RAM that happens to be more stable and make them 2133mhz, take the next batch and make them 1866mhz, then take some and make them 1600mhz

the bottom of the barrel is then used to make 1333mhz ram and lower.

[i_build_nanosuits]

I think a better example would be RAM.

 

all DDR3 memory is made the same way, but they sort the chips to find RAM that happens to be more stable and make them 2133mhz, take the next batch and make them 1866mhz, then take some and make them 1600mhz

the bottom of the barrel is then used to make 1333mhz ram and lower.

this is the binning process.

[nj4ck]

Well an i7 and an i3 are not the same die. More cores, hyperthreading, more cache and many other aspects make an i7 more expensive than an i3. With GPUs its a little different, for example, an R9 290 is nothing more than an R9 290X with a few shader units disabled. So not only are the R9 290 and the R9 290X the same chip, its actually more expensive for AMD to produce the R9 290 chip, because several shader units have to be seperated from the rest of the core by a laser cut. Nevertheless, the R9 290X is the more expensive card, the reason for that being that people who need more performance are usually willing to pay more money for more performance. Consequently Intel, AMD and Nvidia demand higher prices for higher performance.