Sun-Intel partnership may spark price war in x86 server market
The strategic alliance formed by Sun Microsystems and Intel has sent competitors worrying that it will spark a price war in the x86 server market, according to market sources. Sun, which chiefly focused on the high-end RISC server market, has teamed up with Intel apparently to raise its x86 server shipments and share of the market, the sources said. While average selling prices (ASPs) for x86 servers have dropped to almost unprofitable levels, growing competition from Sun will send prices further down, the sources added.
In Taiwan, IBM and Dell has launched one-way x86 servers at NT$10,000-20,000 (US$303-606). The ASPs for two-way x86 servers have also dropped below NT$100,000, with margins declining from the previous 20% to the present 10%, the sources said. The sources remarked that Sun’s partnership with Intel may create more orders for Sun’s OEMs, Mitac International and Tyan Computer.
Comments are closed.