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AMD is preparing a preemptive strike in the “price war”
AMD Launches Price Cut Campaign This Month According To The Source. The event will affect almost the entire assortment and, most likely, is intended to forestall the step of a competitor – as you know, Intel plans to reduce prices for its microprocessors in July. As noted, AMD worked out its step together with motherboard manufacturers.
In particular, AMD will cut prices for four models of single-core Athlon 64 processors by 20-30%. Later, on July 24, literally the day after Intel cuts prices, AMD expects to strike another blow: prices for dual-core Athlon 64 X2 processors will be reduced by 25-50%, and single-core Semprons will fall in price by 10-15%. This is probably how the company hopes to minimize the effect of a competitor’s actions.
Recall that Intel is expected to significantly reduce prices for Celeron, Pentium 4 and Pentium D after the release of desktop processors Core2 Duo (Conroe) on July 23.
Moving from percentages to absolute values, we can say that as a result of the exchange of blows in the “price war”, the dual-core processors that form the basis of the supply will cost about one and a half hundred dollars apiece. In particular, the Athlon 64 X2 3800+ will drop in price to $ 152-161, and the Intel Pentium D 945 – $ 163. As for the “top” models aimed at enthusiasts, they will still remain at the top of the price pyramid.
According to previously published plans, AMD will begin shipping 65nm processors in December this year. This will help increase production volumes and reduce production costs. Full transition to 65nm due in 2021 when AMD quad-core K8L hits the scene. Until these events occur, processors for AM2 and Socket 939 will have to withstand Conroe and the cheaper models of Intel processors of previous series. Reducing prices is one of the tools that should help AMD hold out until fresh forces approach.
Sources: DigiTimes.com, DailyTech