The Economics of Intel Corp.’s Coffee Lake Chip

The Economics of Intel Corp.’s Coffee Lake Chip

Late on Sept. 24, chip giant Intel (NASDAQ: INTC) announced a new processor family, known as Coffee Lake, for the desktop personal computer market. These chips are notable because they offer significantly more processor cores than their predecessors, called Kaby Lake, for roughly the same price.

Now, while offering more cores to customers for the same price clearly improves the value proposition of these chips to potential buyers, the additional cores translate into larger chips. And, all else being equal, larger chips are more expensive to build than smaller ones.

Image source: Intel.

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Source: Fool.com