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AMD Slashes Microprocessor Pricing by Two Times or More

AMD Athlon 64 X2 Processors Become More Affordable

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.

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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.

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