X-bit labs

AMD Slashes Microprocessor Pricing by Two Times or More.

Category: CPU

by Anton Shilov

[ 07/28/2006 | 04:57 AM ]

Advanced Micro Devices has updated pricing on its central processing units (CPUs) by slashing their costs by two times or even more in advance to the launch of Intel Core 2 Duo microprocessors. The firm has also removed several chips from its official price list, which does not, however, mean that such products will no longer be available.

The world’s second largest supplier of x86 microprocessors has lowered the pricing of its single-core Athlon 64 and dual-core Athlon 64 X2 by up to 61%. As a result of the price change, AMD Athlon 64 3800+ and 3500+ now cost $112 and $91, respectively, down from $290 and $189. The dual-core chips prices are now roughly 50% lower than previously, which means that users can get Athlon 64 X2 3800+ for $152 and Athlon 64 X2 5000+ for $301, while earlier the lowest-speed dual-core chips from AMD was priced at $303.

It is interesting to note that AMD slashed the price on its top-of-the-range Athlon 64 FX-62 chip by 20% to $827 without introducing a product that would compete in $1000+ segment. Such a situation happens for the first time in several quarters, as previously AMD offered up to three chips in the FX family – the lowest speed-bin cost about $830, while the most powerful model was priced at approximately $1031.

AMD also reduced prices on its entry-level Sempron and mobile Turion 64 and Mobile Sempron processors quite tangibly, which enables AMD’s partners to offer more cost-efficient products.

The price slashes come as Intel Corp. rolls out its Core 2 processors for desktops and notebooks. While the majority of Core 2 lineup is not available to end users, AMD’s low-priced chips are likely to emerge just as the rival’s microprocessors begin to emerge in the market. As a result of the price slash AMD may hope to sustain the shipment volumes and market shares.

AMD typically does not release any statements concerning price decreases.