The slowest Athlon X2 from AMD, the 4200+, costs $537 while Intel's slowest Pentium D, the 820, costs only $241. This is more than halve less than AMD's cheapest dual-core processor.
The main reason for the huge price difference is AMD's limited production capacity. While Intel is producing 90nm chips in all of its fabs, AMD has only one fab, although it is opening a second in Dresden, Germany.
Analysts claim AMD is currently not in the position to move its product line to dual-core, until it brings on an additional fab. This could either be its own Fab 36 or a foundry.
"Our desktop dual-core AMD Athlon 64 X2 products are priced based on performance," said Cathy Abbinanti, an AMD spokeswoman, when asked for comment on the pricing discrepancy. "Based on the performance benchmark information in recent third-party reviews of the competition's dual-core desktop product, we believe our lowest performing AMD Athlon 64 X2 dual-core processor will outperform Intel's highest performing dual-core part."