AMD slashes processor prices by up to 52% in response to Intel

Are the two leading microprocessor suppliers heading towards a price war amid lackluster demand in the PC market?

Advanced Micro Devices Inc. has cut the prices on nearly all of its microprocessor lines by 7-to-52%, in an apparent response to Intel Corp.'s recent moves to slash its chip tags, according to a report from Reuters here today.

AMD, according to Reuters, dropped prices on its high-end Athlon XP chips by 22% to 32%. The Athlon XP 2100+ now costs $224, down 32% from $330. The Athlon XP 2000+ now costs $193, down 21% from $280, and the Athlon XP 1900+ is now $172, down 22% from $220, according to the report.

The Sunnyvale-based company also cut the prices of its fastest mobile chip, the Mobile Athlon 1700+ by 52% to $235 from $489, the report said. The Mobile Athlon XP 1600+ now costs $192, down 49% from $380, and the Mobile Athlon XP 1500+ now costs $175, down 30% from $250, it added.

The moves were reportedly in response to Intel. On Monday, the Santa Clara, Calif.-based company cut the prices of 21 microprocessor products by a range of 9-to-53% as the company's massive investments in 300-mm wafer fabs and 0.13-micron processes helped to drive down production costs, according to Intel

News source: SiliconStrategies.com