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Bruised but not broken, AMD fires off another volley of price cuts across Core 2 Duo's bow

With only a month until the most anticipated AMD product launch in five years, the company is pulling out all the stops to get competitive before the Back to School buying season.

The AMD-Intel price war, now almost into its second year, was cited as one of the contributing factors to the $611 million dollar loss AMD posted in the fiscal first quarter of 2007.  Following that loss came a 400 employee headcount reduction and a $2.2 billion cash-for-stock deal.

Almost immediately after posting its Q1 loss, Mercury research declared that Intel managed to recapture all of AMD's marketshare gains from 2006 in the first three months of 2007.  JP Morgan directly attributed the Intel traction due to aggressive pricing.

Effective Monday, July 9, 2007, AMD will enforce the following pricing among its channel:

AMD Athlon 64 X2 Pricing
Model


Current
Pricing
July 9
Pricing
6000+

$229
$169
5600+


$179
$149
5200+


$169
$129
4800+


$129
$109
4400+


$115
$89
4200+


$102
$79
4000+


$99
$69

With these new prices cuts, AMD will also significantly trim its retail CPU portfolio.  All single-core Athlon and Sempron models currently in the channel will officially reach end-of-life status (EOL).  The ultra-low cost Athlon 64 3500+, Athlon 64 3200+, Sempron 3500+ and Sempron 3200+ will continue to exist in high growth markets: Brazil, Russia, India and China.

In addition, the Athlon 64 X2 3800+ and 3600+, currently priced at $79 and $69 respectively, will also reach EOL status.

AMD roadmaps confirmed that other low-cost single-core processor families like Lima have already been phased out, just three months after launch. The company is still slated to introduce its 65nm Sparta family, based on the K8 architecture, in September 2007. 

The company's next-generation architecture, occasionally dubbed K10, will officially launch the last week of August for server platforms, and sometime late in the holiday season for desktops.  AMD has not issued pricing notifications on these processors yet.

AMD fired the first volley at the Intel price war when the company dramatically slashed processor prices -- just days before the Intel Core 2 Duo launch.  Since then, both companies reduced pricing of last year's products to less than 33% of last year's street price.

Memos released to DailyTech from AMD distributors confirm that the July 9 AMD price cuts are directly aimed at pre-empting the July 22 Intel price cuts.  These upcoming Intel price cuts will cut current Intel quad-core almost in half.


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RE: No hope...
By Laitainion on 7/8/2007 3:20:49 AM , Rating: 5
Nonsense, I have built a file server (and I'm planning a HTPC) both around AMD processors. The file server has a low end Sempron in it, because it was the cheapest most power efficient processor I could get my hands on. The HTPC will probably have the lowest dual-core Athlon I can find for similar reasons, not everyone needs the power of a Core 2 Duo. In fact most people don't and the only Intel processors AMD can't match for performance are the upper part of the Core 2 line, which are aimed at enthusiasts, a very small part of the market.


RE: No hope...
By tuteja1986 on 7/8/2007 3:56:15 AM , Rating: 3
AMD cheap end processor can compete with intel low end processor in price/performance easily.


RE: No hope...
By Lemonjellow on 7/8/2007 8:13:41 AM , Rating: 4
I just built a general usage PC using a 3600+. I'm almost pissed I didn't wait and put a 4000+ in it, but then again I only paid $330 give or take for mobo w/good
(for being integrated) int. graphics, ram, two hard drives and proc... I would have been out $100 more with a comparable Core 2 setup.

While these price cuts are great for us. I too wonder what it does to AMD, but with my (very) limited knowledge and the fact that I have been watching AMD stock religiously due to the stock market game (my buddies little sister's 4.0 Mathlete friend who talked me into playing when drunk is getting stomped by a 2.25gpa History B.S., yes it stands for bull shit, recipient right now. Btw, who'd of thunk his 5000 shares in a Brazilian startup airline would be tanking?:- )
Anyways their stock seems pretty stable for the past couple of weeks, but I have no clue about the trend over the past few months. I am just holding out that the release of Barcelona will catapult me from 600th place to like 200th.
I don't see them as a company going under anytime soon though. Maybe reducing in size, but still staying afloat. I mean this company survived the dark ages of early Intel dominance. I loved my K6-2 500mhz...

Anyhoo to end my rambling, Core 2 Duo is a sexy sports car of a processor, but when you need to get the kids to soccer practice and still be able to afford Happy-meals at the end of the day; AMD's X2 is one sexily priced family car. (god that sounded way to Dr. Phil'ish...)


RE: No hope...
By hardwareking on 7/8/2007 9:50:33 AM , Rating: 2
i wudn't mind getting the x2 6000+ after the price cut,if they had a really good motherboard out

but with the $266 quad just round the corner,i wudn't bother and basically i wud recommend other people to wait too


RE: No hope...
By bob661 on 7/8/2007 11:50:54 AM , Rating: 3
quote:
but with the $266 quad just round the corner,i wudn't bother and basically i wud recommend other people to wait too
Why would you do that? Not everyone needs the latest and greatest CPU. What the hell is grandma going to do with a quad core? Forget grandma, how about your parents? Or anyone that doesn't game? AMD is more than competitive on the mid to low end and how well they do does NOT depend on us enthusiasts! You guys need to lower your ego's. We are a whopping 1% of AMD's and Intel's market! Wow! We could crash Intel and AMD today if we wanted to with all that buying power we got! And don't bring up the enterprise market because they are the LAST people to jump on the latest and greatest bandwagon.


RE: No hope...
By EndPCNoise on 7/8/2007 7:43:10 PM , Rating: 1
Not everyone needs the latest and greatest CPU...AMD is more than competitive on the mid to low end

Am I the only one on this forum who is growing tired of hearing these same, worn-out, lame arguments?

Let's come back to reality for a moment and look at some facts and real numbers. I'm talking about market share.

AMD gained market share during the pre-core2 duo years. Why, because their K7-K8 series was superior to Intel's Netburst series.

Now fast forward to today. Intel has regained all the market share they lost to AMD, in less than one year's time, due to the release of the superior core2 duo series.

In a nutshell: Whoever has the superior product will make gains in market share, and market share is what really counts.

You can't argue with the numbers.


RE: No hope...
By fenderkb76 on 7/8/2007 10:38:38 PM , Rating: 3
I'm glad someone is talking sense here. Like someone else said, I'll always have a soft spot for AMD, just like most of the sports teams I follow are underdogs and overachievers.

It's a shame that AMD never had the market share and deep pockets of Intel. I'd say they handily pounded Intel in terms of price/performance for 3 years. However, Intel is the 800 pound gorilla who could have taken that treatment for another 5 years without problems, especially with their brute-force marketing and "incentives". Because of the size of Intel and their "installed user base", they were able to completely turn the clock back to pre-K7 days in a matter of months once they created a superior product.

It really is a shame for AMD although it is good for consumers overall. However, if the trend continues, Intel won't be competitively priced a year from now. I hope AMD can make it to the next generation with enough resources to make something "revolutionary" vs. "evolutionary".

What's funny is that right now, I see much more exposure for AMD now than I ever have. Look at a Best Buy or Circuit City ad in the Sunday paper. I dare say that more than half of the PCs and laptops feature AMD CPUs. For crying out loud, Dell even sells them!


RE: No hope...
By InternetGeek on 7/8/2007 11:32:04 PM , Rating: 1
I've owned AMD only once in my life. It wasn't a bad experience and at the time benchmarking wasn't mainstream. The PC then was a 486DX2 or something like that.

Since then I've simply bought the fastest CPU I could get (best price/performance ratio) every 4 years or so. By pure coincidence Intel has always gotten my money because at the moment I was shopping Intel had the speed crown or was so close to the top the price difference wasn't worth it. The PCs, at their respective time, were Pentium 66mhz, Pentium 600Mhz, 2.8GhzHT and currently, after jumping into laptop realm, a Core Duo 2.8Ghz.

My next buying cycle is in exactly 2years. I will buy a 'gaming' laptop because they can let me play and program without much hassle.

It would be nice to try out an AMD, but historically, Intel will have the speed crown then.

Perhaps Intel simply knows how to time their products according to market trends, putting out their best when most of the people are updating. But that would be a gross generalization.


RE: No hope...
By bob661 on 7/8/2007 11:26:04 PM , Rating: 5
quote:
Am I the only one on this forum who is growing tired of hearing these same, worn-out, lame arguments? In a nutshell: Whoever has the superior product will make gains in market share, and market share is what really counts.
Your reading comprehension skills betray you. These "worn-out, lame" arguments will continue until the "worn-out, lame" egotistical belief that enthusiasts drive the market ceases. You NOR I control this market at all. We ARE a very tiny majority. All out performance doesn't mean jack sh!t to the average consumer that pays the bills at AMD and Intel. As long as the web can be surfed, the email can be sent, and the research paper can be written is a REASONABLE time that's all that matters to the bread and butter of Intel and AMD which is NOT us! C2D or Athlon X2. Both work and work well for anything you wish to throw at them. MS Office, Picasa, Google, and even games just don't stop working because you have a slower CPU (which is STILL hella fast!). These are facts that only matter. And tell me once again what AMD's marketshare has to do with how many frames per second I can get in BF2?


RE: No hope...
By EndPCNoise on 7/9/2007 3:05:51 AM , Rating: 2
Hey bob, I find it ironic YOU would bring up reading comprehension skills...

As you read through my post, did you read anything about enthusiasts driving the market?...uh no bob.

In reading my post, did you read anything about you or I controlling the market in any way?...uh that would be no bob.

In reading my post, did I mention anywhere that enthusiasts make up the majority of the market?...again, that would be no bob.

Your comment about what market share has to do with the framerates in BF2 is so ridiculous and off base that I will not even address it here.

bob, I don't know about you, but I wouldn't consider a $266 CPU to be an extreme enthusiast chip. I would consider a $950 QX6700, a $950 X6800, or a $450 Athlon FX-74 to be the extreme enthusiast chips you wrote about. I would call a $266 CPU midrange or maybe upper midrange at the most.

bob, others who responded to my post understood the point I was making regarding market share.

Judging by how badly you misinterpreted my post or maybe you read things into it that I didn't actually say, maybe you should work on your reading comprehension skills.

Lastly bob, maybe you should reconsider your egotistical comment judging by how badly your ego was bruised by my post.


RE: No hope...
By omnicronx on 7/9/2007 10:41:23 AM , Rating: 2
and although you make some very good points, i find it ironic that the original topic you replied to was talking about the enthusiast market not counting for much.

You cannot always look at the numbers either, or if you look at the real numbers of the past 5 years where amd has had a cpu that was faster and cheaper than intel, amd would have a lot more market share and up until c2d intel would have been the one running away with their tails between their legs. But this was the case, why? intel has a hell of a lot more resources, this is the exact reason why these numbers can not always be looked at.
When c2d came out i have no doubt in my mind intel forced the big pc makers to use and market their chips exclusively or much more in their mid to high end systems or they would not offer price reductions, hurting them if another company took the intel deal.

so i guess in the end, all i want to get out there is that as long as intel has at least a comparable product to amd they will have a high market share (not necessarily higher than amd, but never as long as amd is now) , whether or not they hold the performance crown or not.


RE: No hope...
By imaheadcase on 7/8/07, Rating: -1
RE: No hope...
By RjBass on 7/9/2007 12:16:18 AM , Rating: 3
People who constantly point out others spelling mistakes and grammar mistakes on the Internet either need to really get a life, or sell the lame one that they have and move onto something else.


RE: No hope...
By SandmanWN on 7/9/2007 9:46:26 AM , Rating: 1
So pushing people to use better grammar is a bad thing? lol


RE: No hope...
By omnicronx on 7/9/2007 10:44:42 AM , Rating: 2
sure is, i h@ve @ r1ght t0 t@1k 1n l337 5p33k 1f I w@nt.
screw grammar =D


RE: No hope...
By SandmanWN on 7/9/2007 10:33:59 PM , Rating: 2
Then you also deserve to be corrected and get made fun of just the same.


RE: No hope...
By wordsworm on 7/11/2007 11:17:44 AM , Rating: 2
The irony of people's rants against others' use of English is that whilst berating they betray their own inadequate grasp of English.


RE: No hope...
By Webgod on 7/8/2007 9:55:21 AM , Rating: 2
For stocks AMD is probably going to be more or less stable. ATYT which they'd merged with was always a crappy stock. To actually get into it and try to make some money I'd look at NVDA, ERTS, ADBE. AAPL is nuts right now. Some stocks are just going to go nowhere, like Microsoft, Cisco. Intel - INTC - is also mostly stationary. Probably because it split too many times. Even if AMD had "good reasons" to go up, would it? But the stock market is really tricky and I'm no professional. I don't even trade anymore. These days unless I really had some kind of foresight I'd just get a mutual fund and not stress over it.


RE: No hope...
By EndPCNoise on 7/8/2007 5:13:26 PM , Rating: 3
hmm...

I have always thought you were supposed to BUY LOW and SELL HIGH.

NVDA, AAPL, and ADBE seem to be very near their highs, and yet you recommend buying them?

You already missed the boat on MSFT and INTC my friend. You should have bought MSFT at around $24-25 and Intel at around $17-18. Those ships have already sailed.

I may not necessarily know how to make money, but I sure know how not to gamble it away. But hey, maybe you know some new market strategy the rest of us don't, or maybe this is why you don't trade anymore?


RE: No hope...
By Ringold on 7/8/2007 9:00:27 PM , Rating: 2
Buy high and sell higher!

Mutual funds for you, bud. Nothing wrong with mutual funds, either.


RE: No hope...
By EndPCNoise on 7/9/2007 3:13:26 AM , Rating: 2
By all means then, be my guest, and show us all how smart you really are.


RE: No hope...
By Webgod on 7/11/2007 12:28:11 PM , Rating: 2
I was saying he should've been into those stocks instead of AMD you ass.


RE: No hope...
By EndPCNoise on 7/11/2007 5:49:05 PM , Rating: 2
Well it seems you forgot what you said in your own post. Therefore I will pull a quote from it to refresh your memory.

To actually get into it and try to make some money I'd look at NVDA, ERTS, ADBE.

Webgod's comments speak for themselves...who's really the ass here.


RE: No hope...
By Webgod on 7/11/2007 9:12:06 PM , Rating: 2
Alright man, you go out of your way to make me look bad when my point was that AMD has often been one of those stocks that go nowhere. I used to trade it, as NVDA, ERTS, ADBE, ATYT. It's really hard to make money in the stock market from just buying a stock and letting it ride, really you have to trade it, and you have to speculate on when to trade it. NVDA and ERTS have some good swing. AVID used to be great. Most of the action happens before the bell. The rest happens most usually within 20 minutes of the open. I spent some time at it, but ultimately I needed to use the money I'd accumulated elsewhere. Actually I traded since 2000 and I've learned that, y'know, the regular individual trader has got to have some serious bank to really be in the game. Here I was trying to make a helpful post and you have to mess with me. How about I mess with your Reseller Ratings bub?

"Buy low and sell high" yes, that's the first thing anybody learns, it's so elemental I figured I wouldn't even bring it up. Besides, my post shouldn't have been construed as a "Strong Buy on These Stocks Right Now". Sheesh.

Anyway, I hope this clears up my stance and my reputation, I can't let it be challenged. Show some tact next time.


RE: No hope...
By EndPCNoise on 7/12/2007 2:56:57 PM , Rating: 2
Oh man, where do I start...

This "strategy" (and I use the term loosely here) of yours which you have described here is purely market speculation a.k.a. GAMBLING! This should be the first thing anybody learns. The market loves guys like you who use this same, old, get-rich-quick "strategy".
Just calling a spade a spade.

my post shouldn't have been construed as a "Strong Buy on These Stocks Right Now"

How else would someone interpret, "To actually get into it and try to make some money I'd look at NVDA, ERTS, ADBE"?

Show some tact next time.
You call me names on an open, public forum, and yet you tell me to show some tact? Please...

I hope this clears up my stance and my reputation, I can't let it be challenged.
you go out of your way to make me look bad


Step up and take responsibility for what you wrote in an open, public forum. Don't try to pass your blame off on me for comments YOU WROTE! You wrote these comments here. You destroyed your own reputation here!

Your comments are like so many I've seen here before where people either "spin" or just throw out "facts" and "statistics" without listing, nor linking, any sources to support them.

There's an old saying, which seems to be appropriate here...
You want to get out of the hole you dug for yourself? STOP DIGGING!

One more thing...
You may want to consider changing your user name from Webgod to WebgodOfSpeculationAndDenial.


RE: No hope...
By Webgod on 7/15/2007 10:50:16 PM , Rating: 2
Jonny boy, pipe down brotha man. You're hillarious here. FWIW, this along with AnandTech are the only places where I'm known as Webgod. Everyplace else I'm known as EndDTTrolls. Here I am passing on my insight into trading of tech stocks, and you really seem to like to attack me, and by response I defend myself.

You seem to want to slur me as if I don't know what I discuss, or as if I'm providing a disservice, and so I expound. You're up on the stock market. Let's be intellectually honest here, you just want to piss a guy off. ;)

Really for an individual, buying a stock and letting it sit won't necessarily be a good use of one's money unless it goes up at a rate that is "worth your while", splits, or if it pays dividends, unless you trade it at speculated opportune times which requires a deal of research - and guesswork.

quote:
quote:
my post shouldn't have been construed as a "Strong Buy on These Stocks Right Now"

How else would someone interpret, "To actually get into it and try to make some money I'd look at NVDA, ERTS, ADBE"?

Well to look at, I guess would mean research? As in look at its trends, determine if it's at a seasonal low which will go up at a future time? Get into it, I guess might refer to elevating stock trading into relation to other hobbies? Although I already implied that getting a mutual fund would be a more of a set it and forget it approach.

quote:
Your comments are like so many I've seen here before where people either "spin" or just throw out "facts" and "statistics" without listing, nor linking, any sources to support them.

I admit I did a quick reply earlier that didn't exactly properly characterize my initial (outstanding) post, which more reacted to your rhetoric. But, calling your own quote back upon you, am I to take this to mean you expect people to source any statements they make? :) It's a DailyTech comment system, I'm going to make generalized statements for brevity.

By tact, perhaps in the future you should address the opinions/statements that you disagree with, with alternatives instead of attacking somebody's character. If you've got to attempt to bring somebody down to lift yourself up in your own self perception, you have issues to work out. I think you could get alot out of self-psychoanalysis. Or decaf.

I'll give you this though, at one point in the last two years AMD was at what, $40 or so? (But, then the C2D launched.)


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