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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 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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