AMD Slashes Opteron Pricing

AMD’s Opteron Chips Become More Affordable

by Anton Shilov
10/31/2006 | 02:12 PM

Advanced Micro Devices has quietly reduced pricing on its server microprocessors for various infrastructures, possibly, in an attempt to stimulate demand for its server processors while Intel Corp. is ramping up production of its server chips based on the new micro-architecture.

 

The majority of AMD Opteron microprocessors have lost 20% - 30% of their previous price in 1000-unit quantities, however, certain models of the previous generation AMD Opteron 200-series chips designed for 2-way servers now cost nearly two times – or 47% – less than previously. If the price drop between 20% and 30% indicates that the company wants to encourage demand for its products, then price reduction by nearly a half may be a sign of that AMD’s plan to get rid of certain processors as quickly as possible.

As a result of the price reduction, AMD’s most expensive processor – AMD Opteron 8220 SE designed for multi-processor machines – now can be acquired for $2149 (in 100-unit quantities), down from $2649, while the model 8218 is now priced at $1514, 30% lower price-point than before. The top-of-the-range processor for dual-chip servers – AMD Opteron 2200 SE with dual-channel DDR2 memory controller – now costs $786, down from $1165, whereas previous-generation chip that supports dual-channel DDR memory is priced $611, or 42% less than before.

Several days ago AMD has also lowered pricing of certain mobile and desktop processors by 4% – 36%, but not on all models, but mostly cost-effective ones.

AMD typically does not release any statements concerning price decreases.