# Understanding CPU Prices **URL:** \ **Category:** Factual Questions\ **Created:** [February 4, 2003, 5:45pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730 "2003-02-04T17:45:56Z")\ **Posts on this page:** 19\ **Page:** 1
**Author:** ![Skott](https://avatars.discourse-cdn.com/v4/letter/s/b4bc9f/32.png) [@Skott](https://boards.straightdope.com/u/Skott)\ **Post date:** [February 4, 2003, 5:45pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/1 "2003-02-04T17:45:56Z")
I recently bought a motherboard and am looking for an Athlon Thunderbird 1.0 GHz 200 MHz frontside bus CPU to complete it. In my searches through the web, I have found the wildest pricing scemes for this single processor. Believe it or not, it’s selling for [nearly $6000 at zones.com](http://www.zones.com/cgi-bin/zones/site/product/index.html?id=52583).1 However, most pricing falls between [$30](http://www.spartantech.com/product.asp?m1=pw&pid=AMDSKTB1000OEM) and [$95](http://www.memory4less.com/m4l_itemdetail.asp?rid=cnet&itemid=426530). Not only to I find the wide price range odd, I also find the pricing for similar CPUs odd: A 950MHz chip is less than a 1.1GHz chip which is less than a 800MHz chip which is less than a 900MHz chip. Why is there such strange pricing? 1 I emailed zones and got a response back that they’d sell me the processor for only $5000, with no explanation for the pricing. ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [February 4, 2003, 5:55pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/2 "2003-02-04T17:55:43Z")
Well you’re in luck! They price has now dropped to $ 5,843.99 and you can lease it for only $201.62/Mo. ---
**Author:** ![Monstre](https://avatars.discourse-cdn.com/v4/letter/m/e274bd/32.png) [@Monstre](https://boards.straightdope.com/u/Monstre)\ **Post date:** [February 4, 2003, 6:05pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/3 "2003-02-04T18:05:21Z")
Wow – I thought that price just might be a fluke, a mistake on the site. But I did a search on “Processor upgrade”, and it pulls up a whole list of them, most in the thousands of dollars range. That makes **no** sense to me. ---
**Author:** ![Who\_me\_1](https://avatars.discourse-cdn.com/v4/letter/w/958977/32.png) [@Who\_me\_1](https://boards.straightdope.com/u/Who_me_1)\ **Post date:** [February 4, 2003, 6:09pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/4 "2003-02-04T18:09:28Z")
But look at it this way, they only have to sell _one_! ---
**Author:** ![MysteryFellow63427](https://avatars.discourse-cdn.com/v4/letter/m/a88e4f/32.png) [@MysteryFellow63427](https://boards.straightdope.com/u/MysteryFellow63427)\ **Post date:** [February 4, 2003, 7:38pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/5 "2003-02-04T19:38:27Z")
Maybe it’s personally autographed by the chip designers. ---
**Author:** ![II\_Gyan\_II](https://avatars.discourse-cdn.com/v4/letter/i/bbe5ce/32.png) [@II\_Gyan\_II](https://boards.straightdope.com/u/II_Gyan_II)\ **Post date:** [February 4, 2003, 7:51pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/6 "2003-02-04T19:51:47Z")
> [@](#): > > \*Originally posted by Who\_me? \* > \*\*But look at it this way, they only have to sell _one_! \*\* Maybe, that’s the answer. It could be **100 x** and not **1 x** , although I doubt that. ---
**Author:** ![zev\_steinhardt](https://avatars.discourse-cdn.com/v4/letter/z/97f17d/32.png) [@zev\_steinhardt](https://boards.straightdope.com/u/zev_steinhardt)\ **Post date:** [February 4, 2003, 7:56pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/7 "2003-02-04T19:56:18Z")
Or maybe it’s a misprint and it’s a 1 **THz** processor. 😃 Zev Steinhardt ---
**Author:** ![WhiteyFoo](https://avatars.discourse-cdn.com/v4/letter/w/3e96dc/32.png) [@WhiteyFoo](https://boards.straightdope.com/u/WhiteyFoo)\ **Post date:** [February 4, 2003, 7:56pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/8 "2003-02-04T19:56:30Z")
I just got off of the phone with a sales rep over at Mac Zone. They don’t even carry that product any more, but the guy was at a loss as to the pricing. “So, it would just be a processor?” “I believe so.” “Is it made of solid gold?” “No, just a processor.” “And it’s 5800 bucks?” “That’s what my system is showing.” “Are you serious?” “Yep.” “Holy Crap! That’s damn funny. But since you don’t have any more then I’ll just keep shopping.” “Is there something else we can get you instead?” “I really had my heart set on that AMD.” “OK.” “Well, thanks for your time. Bye.” So they are serious…damn. Now, in response to the OP;probably because different sellers get the product for different prices. If I buy 1000 processors from AMD and you only buy 100 they will give me a much better deal. And in turn I can sell them for less than you, and probably will so that I have a better chance of offloading them. Also, some sellers may have bought them earlier in the run of that processor and are trying to make up some of the money lost. ---
**Author:** ![Skott](https://avatars.discourse-cdn.com/v4/letter/s/b4bc9f/32.png) [@Skott](https://boards.straightdope.com/u/Skott)\ **Post date:** [February 4, 2003, 8:20pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/9 "2003-02-04T20:20:30Z")
> [@](#): > > \*Originally posted by WhiteyFoo \* > \*\*“So, it would just be a processor?” > “I believe so.” > “Is it made of solid gold?” > \*\* That, my friend, is damn funny. Here’s the email I got back from them: > [@](#): > > Hi Scott, > Pricing as follows… > > P 00729415 1 OEM ATHLON-1000 384K L1 CACHE SOCKA PGA DESIGN 200 4,973.55 > > Pls call me. > > Thanks, > > Jim Sakai > Corporate Account Manager > Zones, Inc As you can see, he dropped the price for me to $4,973.55.:dubious: > [@](#): > > \*\*Now, in response to the OP;probably because different sellers get the product for different prices. If I buy 1000 processors from AMD and you only buy 100 they will give me a much better deal. And in turn I can sell them for less than you, and probably will so that I have a better chance of offloading them. Also, some sellers may have bought them earlier in the run of that processor and are trying to make up some of the money lost. \*\* True, but with people offering a CPU for $35 and if you’re trying to unload yours, you’re not going to be able to do it if you’re trying to sell them for $80. Especially on the 'Net, where a quick search can turn up the best prices. At first I thought it was a difference between retail and OEM chips, but they all seem to be OEM. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [February 4, 2003, 8:21pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/10 "2003-02-04T20:21:19Z")
Some older CPU upgrades are priced based on a theory which argues that you would only upgrade your system if you were deathly afraid of just buying a whole new one. As a result of your fear, you will accept being gouged like this. Examples of situations where this might frequently happen might be PCs in use as embedded systems with proprietary attached hardware (I saw systems like this at the university I used to work at, and now that I work in surveillance systems I come across PCs where the replacement cost, due to attached hardware that WILL NOT migrate cleanly to other host PCs, can exceed $10K.) Another example might be a high-end server in a large enterprise. Migrating off of one of these can be very expensive, depending on software setup. A good example of HIDEOUSLY expensive cpu upgrades in the past were Pentium Pro Overdrive chips in the mid-late '90s. A lot of PPro servers had _all_ the bells and whistles, and their operators kept them running for quite a while. ---
**Author:** ![Urban\_Ranger](https://avatars.discourse-cdn.com/v4/letter/u/e9c0ed/32.png) [@Urban\_Ranger](https://boards.straightdope.com/u/Urban_Ranger)\ **Post date:** [February 5, 2003, 5:13am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/11 "2003-02-05T05:13:15Z")
Wow. It’s now $ 5,843.99. > [@](#): > > Examples of situations where this might frequently happen might be PCs in use as embedded systems with proprietary attached hardware (I saw systems like this at the university I used to work at, and now that I work in surveillance systems I come across PCs where the replacement cost, due to attached hardware that WILL NOT migrate cleanly to other host PCs, can exceed $10K.) Um, you don’t use AMD T-Bird 1GHz in embedded systems. Besides, most embedded systems have the processor on a PCB, so you can just rip the card out and replace it with a new card if needed. > [@](#): > > Another example might be a high-end server in a large enterprise. Migrating off of one of these can be very expensive, depending on software setup. Um, high end servers don’t use i86 chips. ---
**Author:** ![elmwood](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmwood/32/3060_2.png) [@elmwood](https://boards.straightdope.com/u/elmwood)\ **Post date:** [February 5, 2003, 5:44am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/12 "2003-02-05T05:44:18Z")
Is anyone a member at [ArsTechnica.com](http://ArsTechnica.com)? Might want to post the question over there, and relay the answers back to us. ---
**Author:** ![II\_Gyan\_II](https://avatars.discourse-cdn.com/v4/letter/i/bbe5ce/32.png) [@II\_Gyan\_II](https://boards.straightdope.com/u/II_Gyan_II)\ **Post date:** [February 5, 2003, 6:15am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/13 "2003-02-05T06:15:18Z")
> [@](#): > > \*Originally posted by elmwood \* > \*\*Is anyone a member at [ArsTechnica.com](http://ArsTechnica.com)? Might want to post the question over there, and relay the answers back to us. \*\* Done. ---
**Author:** ![sweepkick](https://avatars.discourse-cdn.com/v4/letter/s/87869e/32.png) [@sweepkick](https://boards.straightdope.com/u/sweepkick)\ **Post date:** [February 5, 2003, 6:27am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/14 "2003-02-05T06:27:46Z")
I am especially fond of the Compaq PC100 512 megabytes of ram at a paltry [$27,762.99.](http://www.zones.com/cgi-bin/zones/site/product/index.html?id=130022) > [@](#): > > Um, high end servers don’t use i86 chips. Just to play devil’s advocate… never underestimate the power of the marketing machine. A few IT manager-types (and their MCSE lackeys) might disagree with you. :rolleyes: sweep ---
**Author:** ![Jim\_Z](https://avatars.discourse-cdn.com/v4/letter/j/7cd45c/32.png) [@Jim\_Z](https://boards.straightdope.com/u/Jim_Z)\ **Post date:** [February 5, 2003, 6:35am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/15 "2003-02-05T06:35:27Z")
I can’t figure out what the hell is going on there. Their prices are all over the place. Though sometimes the PC manufacturers are bad too. I have a pair of dual-capable Compaq workstations; I went to add a second CPU (Pentium II 400) and just for S&G went to HP’s parts store. They wanted $395 for it… o\_O Got one from Compgeeks for $25. Part of me thinks they rely on corporate customers that are willing to get reamed to avoid any potential warranty hassle. ---
**Author:** ![Urban\_Ranger](https://avatars.discourse-cdn.com/v4/letter/u/e9c0ed/32.png) [@Urban\_Ranger](https://boards.straightdope.com/u/Urban_Ranger)\ **Post date:** [February 5, 2003, 6:53am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/16 "2003-02-05T06:53:52Z")
> [@](#): > > \*Originally posted by sweepkick \* > I am especially fond of the Compaq PC100 512 megabytes of ram at a paltry [$27,762.99.](http://www.zones.com/cgi-bin/zones/site/product/index.html?id=130022) Hm, do the good folk at [zones.com](http://zones.com) like to rack customers over the fire? > [@](#): > > \*Originally posted by sweepkick \* > Just to play devil’s advocate… never underestimate the power of the marketing machine. A few IT manager-types (and their MCSE lackeys) might disagree with you. :rolleyes: Yuppers. I have seen some IT managers who don’t know a thing about Unix. Boy oh boy. ---
**Author:** ![Nanoda](https://avatars.discourse-cdn.com/v4/letter/n/ce73a5/32.png) [@Nanoda](https://boards.straightdope.com/u/Nanoda)\ **Post date:** [February 5, 2003, 11:14am UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/17 "2003-02-05T11:14:45Z")
I’ll confirm that corporate customer theory. Someone signs a contract fixing prices at just under current market thinking they’re getting a deal, then get shafted. Or yeah, just a “no-hassle” type thing. 6000$ for a 1Ghz Athlon?! They’d better freak’n sneak in at night the week before I order it, upgrade it, then clean my monitor and vacuum my chair. Leave a mint on my keyboard and it _might_ be no-hassly enough. [pricewatch.com](http://www.pricewatch.com/) confirms that 35$ American price. Delivered BTW. Or pay me only 5000. I guarantee no hassles. 😉 ---
**Author:** ![elmwood](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmwood/32/3060_2.png) [@elmwood](https://boards.straightdope.com/u/elmwood)\ **Post date:** [February 5, 2003, 11:39pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/18 "2003-02-05T23:39:00Z")
> [@](#): > > \*Originally posted by sweepkick \* > \*\*I am especially fond of the Compaq PC100 512 megabytes of ram at a paltry [$27,762.99.](http://www.zones.com/cgi-bin/zones/site/product/index.html?id=130022) > \*\* Well, it’s proprietary. What can I say? 😃 ---
**Author:** ![Rhetoric](https://avatars.discourse-cdn.com/v4/letter/r/41988e/32.png) [@Rhetoric](https://boards.straightdope.com/u/Rhetoric)\ **Post date:** [February 6, 2003, 1:46pm UTC](https://boards.straightdope.com/t/understanding-cpu-prices/152730/19 "2003-02-06T13:46:17Z")
> [@](#): > > \*Originally posted by WhiteyFoo \* > **Now, in response to the OP;probably because different sellers get the product for different prices. If I buy 1000 processors from AMD and you only buy 100 they will give me a much better deal.** Buy 1 processor for only $5,843.99! Or buy 10 for $500!