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Following Intel Corporation with reducing the prices on the Celeron processors earlier today and the Pentium 4 price cut that happened on the 20th week, Advanced Micro Devices lowered the prices of its AMD Athlon XP processors on Monday.

The reduction is not really aggressive, but still a very substantial one since we now can get very fast and powerful Athlon XP processors for a not very high price. Probably AMD makes its CPUs to be more attractive for end-users who plan to acquire an Intel Pentium 4-based platform with 800MHz Quad Pumped Bus and the Hyper-Threading technology support.

AMD Athlon XP and Intel Pentium 4 Current Official Pricing

AMD CPU Model

Old Price

Reduction

New Price

Intel CPU Model

Price

Athlon XP 3200+

$464

0%

$464

-

-

-

-

-

-

Pentium 4 3.06GHz (533MHz)

$401

Athlon XP 3000+

$325

18.5%

$265

Pentium 4 3.00GHz (800MHz)

$417

-

-

-

-

Pentium 4 2.80GHz (800MHz)

$278

Athlon XP 2800+

$225

20%

$180

Pentium 4 2.80GHz (533MHz)

$262

Athlon XP 2700+

$180

24%

$137

Pentium 4 2.66GHz (533MHz)

$193

-

-

-

-

Pentium 4 2.60GHz (800MHz)

$218

Athlon XP 2600+

$151

32%

$103

Pentium 4 2.53GHz (533MHz)

$193

Athlon XP 2500+

$124

28%

$89

Pentium 4 2.50GHz (400MHz)

$193

-

-

-

-

Pentium 4 2.40GHz (800MHz)

$178

Athlon XP 2400+

$103

18.5%

$84

Pentium 4 2.40GHz (400/533)

$163

AMD Athlon XP and Intel Celeron Current Official Pricing

AMD CPU Model

Old Price

Reduction

New Price

Intel CPU Model

Price

Athlon XP 2400+

$103

18.5%

$84

Celeron 2.40GHz

$84

-

-

-

-

Celeron 2.30GHz

$79

Athlon XP 2200+

$81

8.5%

$74

Celeron 2.20GHz

$74

Athlon XP 2100+

$79

6%

$74

Celeron 2.10GHz

$74

Athlon XP 2000+

$66

0%

$66

-

-

Both Intel and AMD are in a very fierce competition these days. Sometimes Intel can offer higher performance, sometimes AMD provides more speed and power, however, the main battle is not about the speed, but about the price. As you see now, AMD is able to sell its Athlon XP processors cheaper compared to the Pentium 4 chips, though, its lower-end CPUs cost exactly the same price as the Celeron microprocessors.

 

The price war may eventually lead to lowering revenues and eroding gross-margins of both companies. I wonder how long this may last?

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