AMD to Can Single-core, Cut Dual-core Prices on Monday
July 7, 2007 2:06 AM
comment(s) - last by
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
$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
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
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
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: can they?
7/8/2007 4:33:29 PM
IBM wouldn't enter the market as a third competitor. They've already got a nice working relationship with AMD which benefits them both.
If anything, should AMD become no longer viable selling their chips at the prices they are, I think IBM would be the first in the queue to buy them out. They'd be well placed as an IBM/AMD combo would be quite capable of mounting a serious long term challenge to Intel in the PC market. Never ever underestimate the resources IBM have available, both financial and technical.
RE: can they?
7/8/2007 7:21:40 PM
My brother speculated the same thing to me about three years back. He said the dramatically increasing costs of building new fabs would likely push AMD out of the market, and IBM would take over. He may be right sooner rather than later....
RE: can they?
7/9/2007 4:47:38 PM
not to mention that IBM only has less then 1 percent of the market share in non server processors.
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