X-bit labs

No New Price Cuts from AMD Incoming – Company.

Category: CPU

by Anton Shilov

[ 07/19/2007 | 02:12 PM ]

Advanced Micro Devices recently said it would not cut the prices on its microprocessors in close future. In a bid to be “transparent” and “predictable”, the company does not want to further reduce the pricing, possibly because it not only affects the world’s No. 2 maker of chips, but also because it makes business of small system builders uneasy.

AMD, who has been reducing the pricing of its microprocessors for several quarters now after its chip lost performance crown to Intel Core 2-series products, now believes that even though Intel will cut down its prices on July 22, it needs no further decrease of pricing shortly.

“We’ve tried to be very transparent on price actions. Things got crazy last year, but this year we made it a point to provide the channel with what it wants, which is a predictable business, a stable business. We communicated that price move well in advance to our channel partners. We haven’t announced our next price move yet, so take that at face-value – another one is not imminent,” said Gary Bixler, AMD’s director of marketing for North America, in an interview with CRN web-site.

The world’s second largest maker of central processing units usually notifies its clients regarding an incoming price-cut, but sources familiar with the company’s ongoing plans do not expect any price-reductions shortly.

Given that back-to-school season is getting closer and demand towards personal computers may increase substantially soon, AMD may not need any price-cuts in order to sustain its normal sales.