AMD has always claimed its smaller die size gives it more wriggle room than Intel when it comes to cutting prices. However, the pressure is mounting on the upstart vendor as it gears up for the launch of its 32/64bit Hammer architecture later this year, as Intel flexes its manufacturing muscle to increase yields on its mainstream lines and drive prices lower.
Translation: Dregsden sucks as expected :-)
===========================================
Source: Computergram International
Date: May 30, 2002
Number: 4428
Advanced Micro Devices Inc made sharp prices cuts across its processor product line yesterday, just days after its much bigger rival Intel Corp made larger than expected cuts on its product line.
AMD's top end Athlon XP 2100+ drops by 32% to $224, while the XP 2000+ drops by 31% to $193. The multiprocessor Athlon MP 2000+ drops by 25% to $224. Even sharper cuts come in the company's mobile range, with the Mobile Athlon XP 1700+ dropping 52% to $235, and the Mobile Athlon XP 1600+ down 49.5% to $192.
The deep cuts by Sunnyvale, California-based AMD were expected in the wake of Intel's sharper than expected price cuts at the start of the week. It may well be that AMD's cuts are more dramatic that it might originally have planned. A spokeswoman for AMD said yesterday that "we respond to market dynamics" and that the latest price list is a "result of those dynamics."
AMD has always claimed its smaller die size gives it more wriggle room than Intel when it comes to cutting prices. However, the pressure is mounting on the upstart vendor as it gears up for the launch of its 32/64bit Hammer architecture later this year, as Intel flexes its manufacturing muscle to increase yields on its mainstream lines and drive prices lower.
In a report yesterday, Merrill Lynch said that AMD will become more competitive with the launch of Hammer, but in the meantime, Intel is "poised to gain market share, most notably in the desktop market." |
