Why is an AMD processor cheaper than an Intel one?

It isn't really cheaper.

If you looked in detail, the i3 2100 DUAL CORE is just as fast as the AMD Phenom II X4 QUAD CORE in benchmarks.

CPU's cannot be compared like they were before, now you have to factor in the efficiency of the architecture, performance, cache etc..

If you looked at the AMD X4 at 3.4GHz and compared it to the Intel i3 DUAL core 3.1GHz, you would immediatly say the quad core is better. But if you looked at benchmarks, you would find out which one would be better for your needs.

Just google CPU benchmarks.

http://www.cpubenchmark.net/high_end_cpus.html

AMD is more for the budget users, while Intel is more for the power user. Either way, they both have pro's and con's.

Intel's newer CPU's have much more performance per core, a 2nd generation Intel Core might be 2x as powerful as a Phenom II core.

More cores and a higher clock speed doesn't always mean extra performance.

You can compare CPU's in the same family using the GHz and Cores method but not when they come from 2 different manufacturers with completely different processor designs.

You could compare the AMD X2 with the X3 and the X3 would be obviously the faster one, but you cannot compare a Core 2 Duo with an AMD X2 with GHz and cores. You would need to refer to benchmarks to get a clear answer.

AMD is the budget brand. Intel offers more but you pay more, a lot more but you don't always need more.

AMD is generally used for people who don't need the absolute best of the best and can make due with a smaller upgrade path.

Intel is fussy and you need to match the hardware or you'll have performance problems.

AMD can work with almost any configuration.

AMD is meant for builders while it is better to get an Intel box prebuilt.

Sometimes AMD is as good or better than Intel for less money however at present, AMD is lagging behind. This may be due to a new focus on an as yet to be released technology, who knows.

AMD processors don't have the "bells & whistles" Intel has, the architecture is different Intel has multithreading..etc...The 975 has higher bench marks than the 1100. The closest to the 1100 in bench marks is the 950...there's only $40 price difference. The best "bang for the buck" is Intel 2600K at $328. the 2600K ranks # 11 while the 1100 ranks #37, there's only $100 difference..The 975 ranks #22 and way over priced at $1045...think about it... the 2600K is faster than the 975 and $717 cheaper. as you can see PRICING means doo-doo when it comes to performance!

Brandes like ATI and AMD, which have joined forces into one company called AMD, aim specifically for people with the lower budget, and in most cases, actually tend to be better, because they use cheap, but marvelous parts and engineering. Intel is more famous, ergo, you pay for their brand name, not really the item itself. Go with AMD it's superior to Intel and it's cheaper to boot.

Check out this chart to see how the different processors from both compare. Most of the "Specs" are just marketing tactics.

http://www.cpubenchmark.net/high_end_cpus.html

you can use the site to search specific models and compare them to one another.

Intel is just a brand name. Something like Chevy vs. Cadillac. One's not really any better than the other. It's just the name.