AMD Will Not Cut Prices Next Week

by Anton Shilov
01/28/2004 | 11:08 PM

Advanced Micro Devices, who very often follows its main rival Intel Corporation with price cuts, denied assumption about CPU prices slashes next week, according to Reuters News Service.

An analyst for Susquehanna Financial Group issued a report to clients stating that both Intel and AMD were planning to make price cuts on Monday. However, his suppositions did not materialize.

“AMD is not planning a price change next week,” said AMD spokeswoman Brenda Rarick.

“We do not disclose price changes in advance, but I will confirm we do nit have any plans for next week,” she added.

Intel is releasing its Pentium 4 “Prescott” processors early next week at lower price points than comparable Pentium 4 “Northwood” chips are quoted now. Since performance of different Intel Pentium 4 processors with the same core-speeds is generally the same, the Santa Clara, California-based chipmaker lowers prices on all its performance-mainstream and high-end chips.

Starting from Monday, Pentium 4 processors with 800MHz Quad Pumped Bus with speeds at 3.40GHz, 3.20GHz, 3.0GHz and 2.80GHz will cost $417, $278, $218 and $178 respectively in quantities starting from 1000 units.

AMD positions its higher-end Athlon XP CPUs as well as Athlon 64 microprocessors against performance-mainstream and high-end Intel Pentium 4 chips. Currently Athlon 64 CPUs 3400+, 3200+ and 3000+ cost $417, $278 and $218 respectively. Athlon XP microprocessors with model numbers 3200+, 3000+ and 2800+ are quoted at $213, $203 and $140. All prices are effective for business quantities.

Generally speaking, prices for comparable Intel Pentium 4 and AMD64 CPUs will be equal, while AMD’s Athlon XP will be priced lower than their rivals.