The first chip that is made always cost more, like around 4-5 million $$$$ so they have to charge alot so they can make there money back + pay there employees + make a profit. AMD does the same thing the reason there chips don't cost as much is because they, cost about 1/2 of what a Pentium 4 costs to make 1 chip. The main reason is amd uses alot of aluminum in their products Ware as Intel uses more expensive copper, and AMD uses copper wires Ware as Intel uses gold wire.