After recent reports stated that AMD will launch a pricing campaign later this month, Taiwan-based motherboard makers have clarified AMD's position, saying the CPU maker will officially inform its partners about its latest pricing strategy on June 14, according to sources at motherboard makers.
The sources indicated that AMD originally planned to lower dual core CPU prices by 50%. However, after internal discussion, the company decided to slash prices by 30-40% instead. This is the biggest reduction the company could bear, the sources added.
In order to decrease effects of Intel's price cuts scheduled for July 23, AMD will cut prices on its AM2 dual core CPUs by 30-40% on July 24, noted the sources. The company will offer its Athlon 64x2 5000+ dual-core CPUs at US$388-487, down from US$696.
Its Athlon 64 single-core CPU series 3800+ will also see a 50% reduction in price, falling to US$145, down from US$290, the sources indicated. Meanwhile, AMD's entry-level single-core Sempron series will see a 10% cut in prices.
In response to rumors saying that AMD will find it difficult to achieve profits adopting such an aggressive pricing strategy, the company reiterated that its 12-inch Dresden fab will begin shipping 65nm-made processors in the fourth quarter of this year.
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Oh, that's great. "You'll find it difficult to make profits at those prices. ... We will start shipping 65nm parts in December!" What about the rest of Q2, Q3 and Q4?
And they wanted to cut 50%, but decided they couldn't afford to?
Look out below. |
