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AMD's July 24 exact price drops
Memos from AMD insiders reveal big plans for July 24, 2006

According to memos recently obtained by DailyTech, AMD will drastically cut prices on its desktop processors after the July 23rd release of Intel’s Core 2 Duo Conroe processors. The memos that DailyTech has secured are between AMD and Japanese system manufacturers and indicate the following price cuts will become effective July 24th, 2006:
  • AMD Athlon 64 price cuts will receive price cut up to 30%
  • AMD Athlon 64 X2 will receive price cuts up to 50%
  • AMD Sempron processors will receive price cuts up to 15%
The memos only mention the AM2 processors; however the AM2 parts are now priced identically with Socket 939 components.  AMD has previously indicated that the aim of the AM2 processors was to be price competitive with its legacy components. Several of the dual-core components do not show a price drop, but it's possible AMD has just not announced the pricing on these processors yet.  The Athlon 64 FX model line will not receive any price reduction.

Perhaps the most interesting price reductions are on the Athlon 64 X2 dual core line.  The memo claims the Athlon 64 X2 3800+ will fall from a processor-in-box (PIB) of $303 to $169. Single core Athlon 64 3800+ processors will fall from $290 all the way to $139 through special promotions.  The AMD Athlon and Sempron Energy Efficient models do not show any price reduction.

Intel already announced that it will also cut prices of its Pentium D and Pentium 4 processors between now and the general availability of Conroe.  Conroe benchmarks have recently surfaced with significant performance advantages over Athlon 64, but the largest advantage of the processor until now has been the price advantage.  With AMD and Intel in a price war over next generation processors, ultimately consumers will benefit the most.

65nm SOI AMD Athlon 64 Revision G processors are expected to ship this December.  The memo also stated that AMD will not publicly announce the price cuts on its processor line until after the Conroe launch to avoid cannibalizing its current sales of AM2 CPUs.

Update from the EIC 12/06/2006: Digitimes is also running a story on this subject, claiming the Athlon 64 3800+ will fall to prices as  low as $152, and that a similar performing Pentium D 945 will run for $163 at the same time. 

We have included the full pricing now as well.

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The consumers win
By phatboye on 6/12/2006 12:16:31 AM , Rating: 3
BRING ON THE PRICE WARS!!!!!!!!!!!!!!!!!1111


Hopefully dual core amd's will now become affordable.




RE: The consumers win
By rushfan2006 on 6/12/2006 8:27:57 AM , Rating: 2
How anyone, even Intel diehards, could view the news of price drops as anything bad is well beyond me.

I think this is great news. I'm still about 6-8 months from having the money to build my next gaming box though...so for me it will come down to price/performance -- I'll *never* have the bleeding edge latest on any system I build, I just don't have deep enough pockets for that. However, I try to at least build in the "middle" -- not the highest end, but definitely not the lowest end either.

And for folks like me -- these price cuts are excellent news.



RE: The consumers win
By TheDoc9 on 6/12/2006 11:08:06 AM , Rating: 5
I'll tell you how you view it as bad, If one of these companies runs the other one out of business. That's bad.

The consumers don't win.


RE: The consumers win
By bob661 on 6/12/06, Rating: -1
RE: The consumers win
By Tsuwamono on 6/12/06, Rating: 0
RE: The consumers win
By masher2 (blog) on 6/12/2006 1:49:34 PM , Rating: 3
Of the ten most intense hurricanes to strike the US, only one (Katrina) has been within the last 35 years. In the much shorter period from 1915-1935, four of those hurricanes struck the US--- one of which hit New Orleans itself, just as did Katrina. We weren't driving many SUVs in 1915, strangely enough.

Currently, the Atlantic basin is at the height of a natural "busy cycle", that has nothing to do with global warming. Cyclone activity in the Pacific, on the other hand, has decreased somewhat.

Hurricane experts are torn on the effects global warming may be having on storm production, if any. Some believe it may slightly strengthen storms, others believe it may actually cause a net weakening. However, they are all united on one point-- that the current high level of storm activity is, almost entirely, due to those natural cycles, and not the actions of mankind.


RE: The consumers win
By mikable on 6/13/2006 9:59:27 PM , Rating: 2
Yes, well that was on topic!

Nice price cuts! I'm getting a new CPU ! :)


RE: The consumers win
By jkostans on 6/12/2006 1:51:16 PM , Rating: 2
These price cuts aren't enough in my opinion. If intel holds true to their prices, the 2.4Ghz 4mb conroe part is a better deal than anything AMD can offer. I also think these parts will be good overclockers... the E6600 could be the next Opteron 165 if it has decent headroom.


RE: The consumers win
By bards on 6/13/2006 6:43:04 AM , Rating: 2
Couldn't agree more.

I'm a fan of the fastest/coolest CPU for the least amount of cash ! Given that a middle of the line conroe will be close to an FX62 for about 1/3 the price, I know what I'll be aiming it... the conroe. I love AMD, I have all my servers with AMD64 but I cant wait for conroe.

AMD would need to cut prices now to get me to buy an X2, IMHO, they have always been way too expensive and waiting until after conroe would seem like madness. I would buy a x2 4600 now if it were $250 (USD), but it aint.

Good luck AMD you're going to need it.



RE: The consumers win
By animedude on 6/15/2006 3:48:15 PM , Rating: 2
Good luck getting one. Ratio of Netbursts to Core 2 Duo is 4:1. Newegg will only have the highend Core2Duo chips because all midrange chips will be eat up by OEM. By the time I get one on my hand is next year spring.


RE: The consumers win
By Steve Guilliot on 6/12/06, Rating: 0
RE: The consumers win
By TomZ on 6/12/2006 1:12:13 PM , Rating: 4
I would suggest you think about where you are getting your information from on these issues, and whether they are as much as "fact" as you think.

Fears of global warming mostly comes from politicians and environmental groups.

Fears of oil shortages mostly comes from politicians and the oil industry itself.

Do you think these groups are in a position, or have any desire, to supply "just the facts"?

Most environmental scientists feel that there is too little information to draw any conclusions on global warming. Things people blame for global warming, e.g., more active hurricane season in North America, have also been attributed to other causes, like the 25-30 year hurricane cycle in this case.

Many economists and unbiased industry obervers believe that oil's currently high cost will lead to significant investments in exploration and drilling, which will thus cause a strong increase in supply in the near future. This should last long enough to transition to other forms of energy for the longer term. We will probably not "run out" of oil; instead, we will replace oil with more cost-effective energy sources.

For most of these arguments, there are folks constructing arguments on the other side, and these are very complex issues. In other words, these issues are far from "hard fact," and thus is it wrong to simply dismiss that someone who does not believe in these things is "drinking the koolaid." It is not as clear as that.


RE: The consumers win
By Googer on 6/13/06, Rating: 0
RE: The consumers win
By Bonesdad on 6/12/2006 12:42:50 PM , Rating: 2
Here we go again..."AMD will go out of business, then Intel will team up with the Bush White House and use the Ring of Power to destroy us all.." egad.


RE: The consumers win
By Ringold on 6/14/2006 5:16:25 PM , Rating: 2
There is merit to the idea the price wars could devastate AMD..

But..

Look at GM (or most airlines). Companies can survive and continue to invest in R&D for years in spite of massive losses, even with "junk" credit ratings. AMD will have its day again.. but I'd feel better if there was a 3rd option out there too.. but cant have it all. Since we can't have it all, I'll comfort myself with having a Core Duo 2 instead. :)


RE: The consumers win
By tuteja1986 on 6/12/2006 11:29:37 AM , Rating: 2
I knew AMD would do this , the moment i saw thoes benchmark. But will i be able to buy a AMD X2 4800 for $300 :


RE: The consumers win
By ZeeStorm on 6/12/06, Rating: 0
By KristopherKubicki (blog) on 6/12/2006 12:43:05 PM , Rating: 2
Typically I'd agree with you - but I'm pretty sure AMD does not want these numbers publicized.


Osborne Effect.
By Googer on 6/12/2006 12:10:30 PM , Rating: 2
quote:
AMD Plans Major CPU Price Drops Day After "Conroe"


I am thinking that AMD's preemptive announcement of major price cuts may cause another instance of the good 'ol Osborne effect.

http://en.wikipedia.org/wiki/Osborne_effect