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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 soydios on 7/8/2007 4:14:09 AM , Rating: 4
I'm worried about AMD competing in the high-end. I'm not worried about AMD suriving as a company. Their price-performance is as good as or better than Intel's at the midrange and low-end, and their fabs are working at capacity plus additional outsourced production. As a company, they'll survive.


RE: No hope...
By Mathijs Moonen on 7/8/2007 2:45:42 PM , Rating: 2
Nowadays, a company with the financial possibilities AMD has can never die, like most of the people here already said, simply because there are enough crazy powerfull investors to support the company or even take it over. I think it would not be bad for the AMD we know today to go down, if after that a company with the ressources of ASUS or APPLE takes it over: has Intel ever NOT been financially superior to any other CPU manufacturer? There is no reason to worry about the efficient products we know from AMD and the price wars we appreciate so much.


RE: No hope...
By werepossum on 7/9/2007 6:16:13 PM , Rating: 2
quote:
has Intel ever NOT been financially superior to any other CPU manufacturer?


They were not financially superior to Motorola not so long ago, weren't they? Maybe I'm remembering wrong, but seems to me that in the CP/M days everything was Motorola and National Semiconductor, with Intel being the odd man out, mostly used for embedded applications and do-it-yourself kits until DOS. But maybe my mind is slipping.


RE: No hope...
By blaxor on 7/11/2007 3:43:09 AM , Rating: 2
motorola 68000 all the way baby :D

god do i miss my sega !!!16-BIT!!! megadrive - things were SOOOOO much simpler back then....


RE: No hope...
By Aries1470 on 7/15/2007 5:17:44 AM , Rating: 2
quote:
Maybe I'm remembering wrong, but seems to me that in the CP/M days everything was Motorola and National Semiconductor, with Intel being the odd man out, mostly used for embedded applications and do-it-yourself kits until DOS. But maybe my mind is slipping.


Well, don't forget IBM too... They had the PowerPC for the Mac's after Apple changed from Motorola... IBM is in a VERY strong position to get in the 'game', but they don't. They were ALSO in it in the 386/486 days, and I think even until the early days of the Pentium's. So, guess where you can find them today... in your PS3 & XBOX 360 both PPC based.

Then on another note, to some other posts above. There is still VIA, that is the extremely low power and umm slow ;-) So for those that say 'no need for all the speed...' etc, why aren't they selling like hot cakes? If anyone needs a link, just google for VIA... You can use them in very small boxes, have a modest hdd etc for a pc for 'Mum & Dad/ Grandma' etc. Easy, Intel has 'control' of the main channels and have 'incentives'. Go to your average 'target', 'Kmart', 'D!ck Smith & Powerhouse', 'Harvey Norman' etc (these brands in Australia and elsewere?) if you go to ask for a 'cheap' pc for surfing the internet and viewing a moving editing your DV movies etc, they would PUSH the Intel rather than the AMD. Of what I rememebr, there was a lawsuit for this by AMD vs Inter for this very reason, just haven't followed that up recently.

So, there are also other brands out there and other companies that might walk in, but still, AMD / Intel are the most known.


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