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Intel set to cut prices ahead of AMD's "Barcelona" launch

Last week, AMD talked about its desktop plans for the upcoming year in Sunnyvale, California. Although AMD showed its upcoming desktop processor running in single and dual-socket configurations, the company chose not to announce an official launch date for its next-generation desktop processors. According to Robert Rivet, AMD executive vice president and CFO, however, AMD's next-generation processors will be ready by Christmas.

Despite how distant the possible December launch date of AMD's native quad-core desktop processors may seem, Intel is already stepping up the competition and will be instituting a series of aggressive price cuts in July. We originally reported these major price cuts, which will be targeting Intel's quad-core desktop and server processors, in March. At the time, we didn't know the official date of when the price cuts would take place. We can confirm today that the price cuts will take place on July 22.

Intel Core 2 Quad
Model
Core
Frequency
L2 Cache
FSB July 22
Pricing
QX6800 2.93 GHz 8MB 1066 MHz
$999
Q6700 2.66 GHz 8MB 1066 MHz
$530
Q6600 2.40 GHz 8MB 1066 MHz
$266

The first part of the price cuts will center on Intel's quad-core desktop processors. The Q6600, which Intel launched in February, currently sells for $530 in quantities of 1000. When the product was originally launched, it was priced at $851 in quantities of 1000. The next round of price cuts will effectively lower the price to $266. The selling price of the Intel QX6700 will also be lowered, coming in at $530 by the end of July.

Intel Quad Core Xeon DP
Model
Core
Frequency
L2 Cache
FSBJuly 22
Pricing
X53653.00 GHz 8MB 1333 MHz
$1172
X5355 2.66 GHz8MB 1333 MHz
$744
E5345 2.33 GHz 8MB 1333 MHz
$455
E5335
2.00 GHz 8MB1333 MHz
$316
E53201.86 GHz 8MB 1066 MHz
$256
E5310
1.60 GHz 8MB1066 MHz
$209
L53201.86 GHz 8MB 1066 MHz
$320
L5310
1.60 GHz 8MB1066 MHz
$273

Intel is also slashing the prices of its quad core Xeon DP processors. The flagship Xeon DP X5355 will see its introductory $1172 price drop to a more manageable $744. Likewise, Intel's slowest 1333MHz FSB Xeon DP processor will drop to $316 while the Intel's two low-voltage Xeon DP L5320 and L5310 processors will fall to $320 and $273 respectively.


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RE: Little early to announce these cuts?
By DeepBlue1975 on 5/15/2007 7:38:41 PM , Rating: 2
Maybe they're facing too high a demand and want to "calm down" the stream a bit, so they can stock pile a bit till they slash down their prices.
Even better for Intel, this can stop many possible OEM deals AMD could be trying to cook in the short term and july is right there at the beginning of Q3.

This is not any good for AMD... I also hope it survives, I've been using AMD for years (have an a64 right now), but all I wanna do now is wait for that quad cores to become cheap just to get one in my rig :D


RE: Little early to announce these cuts?
By Mitch101 on 5/15/2007 7:55:07 PM , Rating: 2
AMD in the retail space where most people buy thier chips is where Intel will hurt AMD.

On the server side though AMD will flourish because most corporations dont second guess spending an extra grand when it comes to server performance. AMD will make thier money on the top end but break even on the mid level consumer areas.

Im not sure what Intel is shooting for as this is a double edge sword for them. Yes they win on the price and market share but if AMD is keeping track of Intel pricing tactics to hurt AMD's profit like it will show in court that Intel is abusing its monopoly powers to shut out AMD and stiffle thier innovation R&D dollars. This would also fall into anti-competitive practices. Its pretty definate that AMD's loss on the low because of pricing may cause a judge to increase the lawsuit winnings in the end for AMD. When Intel's lost e-mail it surely was a red flag that the company had much to hide. So much that the fines that will follow for losing the e-mail they must have anticipate as less than if they had retained the messages. This fine should be massive for obstructing justice but even more so if there is any indication of it being done on purpose (As if it wasnt) then jail time can be added to some peoples resumes.

I went through something similar when I worked for Phillip Morris we had to enable 365day email retention on all the servers. Phillip Morris in the USA is considered much more evil then Intel and you could imagine what those fines would have been if they had told a judge well we lost all those e-mails you wanted us to keep.

AMD needs to be around when the lawsuit ends but without a heavy income its hard to tell how well they will be able to compete without R&D dollars.


By stromgald on 5/15/2007 8:11:21 PM , Rating: 2
AMD's lawsuit isn't about pricing tactics. They're accusing Intel of threatening to cut off financial support, technical support, and possibly reduce chip supplies to certain companies unless those companies reduced their consumption of AMD chips.

AMD was actually the one that initiated the current price war because their Athlon X2 chips haven't been able to compete with Core 2 for almost a year now. Intel is continuing the price war because they see Barcelona on the horizon. I doubt the price war could be seriously considered as anti-competitive.


By cochy on 5/16/2007 12:49:50 AM , Rating: 2
quote:
Intel is abusing its monopoly powers to shut out AMD and stiffle thier innovation R&D dollars


Intel isn't close to a monopoly. Especially in the server space where these price cuts are mainly aimed. The only thing Intel is guilty of in this case is savvy business tactics and deep pockets. It's no secret AMD over-extended itself in the near term with the ATI purchase. ATI was a long term strategic move for AMD, now Intel is tying to make it hurt a lot short term to lessen the long term gains for AMD. Intel is being very smart lately.


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