Thursday, 12 July 2007

AMD Does It Again, Cuts Processor Prices, Intel To React

In a bid to gain market share despite revenue losses, Advanced Micro Devices Inc. (AMD) has cut the prices of desktop processor, pitching it against its archrival Intel...

In a bid to gain market share despite revenue losses, Advanced Micro Devices Inc. (AMD) has cut the prices of desktop processor, pitching it against its archrival Intel that is expected to follow the move later this month.

AMD slashed prices on its top-of-the-line desktop PC microprocessors on Monday to USD599 per pair for the 3GHz version from USD799, making it the same price as its 2.8GHz version. The move is probably aimed at clearing all the stocks of the chips ahead of the launch of its next generation chips, Barcelona.

AMD also reduced the price of some of its best dual-core processors, the Athlon 64 X2 6000+, which runs at 3.0GHz, fell to USD 178 from USD 241 and its AMD 64 X2 5600+, to USD 157 from USD 505, according to its latest price list.

A total of six AMD Athlon dual-core offerings for the desktop can now be bought for below USD100 each. The company's single core desktop processors are all now priced below USD 100, with the Athlon 64 3200+, a 2GHz chip, at USD 48 and the Sempron 3200+, a 1.8GHz chip, at USD 31, the lowest price processor on the list.

Intel is expected to follow the AMD price reductions with a round of its own price slashing on July 22.