Intel, AMD Prepare Chip Price Cuts

Leading Chipmakers to Escalate Competition with Price Reduction

by Anton Shilov
08/20/2004 | 11:44 PM

Sources familiar with plans of the world’s two leading makers of microprocessors for computers told X-bit labs that both companies were expected to cut prices on their desktop central processing units starting from Monday, the 23rd of August, 2004.


Intel Corp. traditionally changes pricing of its desktop microprocessors on the 22nd of August (Intel changes prices in its price-list on Sunday, but clients receive products with updated pricing only on Sunday) prior to the back-to-school season, whilst AMD typically follows its arch-rival with price slashes. According to sources close to the chipmakers both will perform pretty aggressive price reduction on the whole range of microprocessors, including entry-level, mainstream and high-end segments.

Intel’s high-end Pentium 4 models clocked at 3.00GHz – 3.60GHz shipping in either LGA775 or mPGA478 packaging will decrease pricing by about 18% - 35%, sources claimed. The Pentium 4 560 (3.60GHz) will cost $417 starting from the 23rd of August, whereas lower-speed versions, such as 3.40GHz, 3.20GHz and 3.00GHz will be priced at $278, $218 and $178 respectively. Intel’s Celeron and Celeron D chips will also become more affordable by about 6.7% - 13.5%.

Advanced Micro Devices will also slash its prices by aggressive margin of up to about 30% - 35% to either match or beat the prices of competing Intel’s products.

Both firms are unlikely to reduce pricing on central processing units aimed at the hardware enthusiasts and hardcore gamers, such as Intel Pentium 4 Extreme Edition and AMD Athlon 64 FX.

Officials from Intel Corp. and Advanced Micro Devices typically do not comment on future pricing.