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AMD says Intel is cutting prices

Posted on Thursday, April 13 2006 @ 20:08:36 CEST by

Yesterday at AMD's conference call Henri Richard said AMD is cautious for its Q2 outlook because it's historically a difficult quarter for the computer industry. He says AMD is seeing Intel producing a heap of low-end products and making drastic price cuts to improve sales.
He said that channel/OEMs reported improved availability of Intel's chipsets and that AMD have seen a lot of activity from Intel at the low end. AMD, he said, runs a very lean channel with inventory of four or five weeks.

As for product mix, Richard said that server chip sales continued to be the leader for AMD followed by notebook chips. He said: "Clearly servers is the engine for growth with triple digit growth year on year." AMD, he said, had a very robust January and February. Its average selling price (ASP) continued to increase in the quarter, particularly in the notebook segment. The quarter finished as strongly as AMD expected.
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