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I never understand what are the basic differences between these processors apart from core i5 and core i7 supports turbo boost

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It's just a marketing distinction. The architecture is basically the same, but the more expensive ones with faster clock speeds and more features are branded as i5 and then i7.

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This Wikipedia page has a nice table. Another difference is L3 cache size.

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I believe some models have integrated GPU for 720p/1080p playback and such. I have a core i3 in my HTPC and it performs like a champ with no dedicated video card.

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