X-bit labs

AMD Quietly Slashes Desktop Processor Prices.

Category: CPU

by Anton Shilov

[ 02/14/2007 | 11:56 PM ]

Advanced Micro Devices has inaudibly slashed prices on its desktop microprocessors for the second time in the last four weeks under the pressure from Intel’s Core 2-series chips and seasonally slow first quarter. But while mainboard manufacturers were surprised by the move, they noted that the biggest concern is still AMD’s ability to supply chips.

The price slash vary from 3% to 45% with the majority of offerings losing from 8% to 20%. Obviously, AMD’s main concern at the moment is the success of the Athlon 64 X2 family of dual-core processors, thus, the price of the high-end models is reduced quite aggressively. For instance, the Athlon 64 X2 5600+ can now be acquired for $326 (in 1000-unit quantities) after losing 35% of the price, whereas the model 5400+ now costs $267 after facing price reduction of about 45%.

AMD does not typically release any statements concerning price changes, however, one of the “official” reasons for the slash could be the formal introduction of the Athlon 64 X2 processor 6000+, which is already available on the market, at $500+ price-point.

“With Windows Vista boosting sales in the PC market combined with the AMD Athlon 64 single- and dual-core processor price drops, if AMD can manage its production ability in order to meet demand, it could have the opportunity of impacting Intel's desktop market,” a source among mainboard makers told DigiTimes web-site.