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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
L2 Cache
FSB July 22
QX6800 2.93 GHz 8MB 1066 MHz
Q6700 2.66 GHz 8MB 1066 MHz
Q6600 2.40 GHz 8MB 1066 MHz

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
L2 Cache
FSBJuly 22
X53653.00 GHz 8MB 1333 MHz
X5355 2.66 GHz8MB 1333 MHz
E5345 2.33 GHz 8MB 1333 MHz
2.00 GHz 8MB1333 MHz
E53201.86 GHz 8MB 1066 MHz
1.60 GHz 8MB1066 MHz
L53201.86 GHz 8MB 1066 MHz
1.60 GHz 8MB1066 MHz

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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I need help
By GhandiInstinct on 5/15/2007 10:47:16 PM , Rating: 2
ok so 2.4ghz $266, 226 mhz more $200, and then $460 more for 270 mhz more...
if 2.4ghz = $266
HOW CAN 220MHZ = $200?
AND HOW CAN 270MHZ = $460?

RE: I need help
By JeffDM on 5/15/2007 10:54:47 PM , Rating: 2
Maybe they are getting far more 2.4GHz chips than the upper bins? The CPU is only part of the system cost, and if you were spending a few thousand dollars on a server, the $200 price jump would be more than acceptable.

RE: I need help
By nerdye on 5/15/2007 11:49:15 PM , Rating: 2
you're equation is exactly something I have done myself and wondered the same thing. Only if Kentsfield was more equipped for multi processor systems, we would certainly not be seeing such a price range, just as xenons still have a much larger price premium, regardless if fb-dimm is necessary (which is a fading technology it seems). Hyper-Transport 3.0, won't you change the image of architecture? Or will FSB technology remain on top as Intel Up's its core 2 architecture with faster bus speeds, time will tell. Yet competition is good for us all, well that is for us civilized beings that no longer have to fight to the death to find a mate =).

RE: I need help
By cochy on 5/16/2007 12:53:55 AM , Rating: 2
Umm well the top of the line cpu has been massively priced since the Pentium 2 at least. Anyone remember how much the P2 333Mhz was at launch?

RE: I need help
By coldpower27 on 5/21/2007 4:38:05 AM , Rating: 2
The price/performance curve always drops like crazy on the bleeding edge.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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