AMD won't cut prices - Intel wins price ware

Posted on Tuesday, Jul 17 2007 @ 13:49 CEST by Thomas De Maesschalck
It looks like Intel has won the processor price war as AMD announced it has no plans to further cut processor prices anytime soon. AMD would probably love to cut their prices to steal some marketshare from Intel but the problem is that its current financial situation doesn't allow it.
Intel is widely expected July 22 to cut prices on its three desktop quad-core processors and July 29 to its quad-core server SKUs. The Intel price cuts are perhaps all part of its own cunning plan, but they come on the heels of AMD's own round of price-slashing last week. There's no small amount of speculation that Intel's anticipated move is a reaction to AMD's, and from there the leap to predicting a brand new price war isn't a terribly long one.

But all-out war just isn't going to happen, asserted Bixler, whose company cut prices to its range of dual-core Athlon 64 X2 and FX processors by as much as 33 percent last week.

"We've tried to be very transparent on price actions. Things got crazy last year, but this year we made it a point to provide the channel with what it wants, which is a predictable business, a stable business. We communicated that price move well in advance to our channel partners. We haven't announced our next price move yet, so take that at face-value -- another one is not imminent," he said.

Bixler added that the Athlon 64 price cuts were "not a reaction to anything that Intel had done."
Source: CRN.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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