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AMD cuts chip prices, Intel expected to follow

AMD cuts chip prices, Intel expected to follow

Advanced Micro Devices announced its latest round of desktop processor price cuts on Monday, and rival Intel is expected to follow the move later this month.

AMD slashed prices on its top-of-the-line desktop PC microprocessors to US$599 per pair for the 3GHz version from US$799, making it the same price as its 2.8GHz version. The move may be a sign it wants to clear out the chips ahead of the launch of new products. The company also reduced the price of some of its best dual-core processors: The Athlon 64 X2 6000+, which runs at 3.0GHz, fell to $178 from $241 and its AMD 64 X2 5600+ fell to $157 from $505, according to its latest price list.

The company has apparently stopped producing several chips, the Athlon 64 X2 3600s and 3800s.

Six AMD Athlon dual-core offerings for the desktop can now be bought for below $100 each. The company's single core desktop processors are all now priced below $100, with the Athlon 64 3200+, a 2GHz chip, at $48 and the Sempron 3200+, a 1.8GHz chip, at $31, the lowest price processor on the list.

AMD's laptop processor prices are unchanged.

AMD and Intel have been in a tit-for-tat price war for well over a year now, and the results have been great for users -- particularly in desktop PCs.

Intel is expected to follow the AMD price reductions with a round of its own price cuts on July 22, according to a report by investment banking firm Goldman Sachs.

TABLE: A sample of AMD Price reductions. All quotes in US dollars, for 1000 units.

ProcessorNew June 9, 2007 price list.Old April 9, 2007 price list
Athlon 64 FX-74 (64-bit, 3.0GHz, 2MB total dedicated L2 cache, 2000MHz HyperTransport bus, Socket F (1207FX)) $599/pair$799/pair
Athlon 64 FX-72 (64-bit, 2.8GHz, 2MB total dedicated L2 cache, 2000MHz HyperTransport bus, Socket F (1207FX)) $599/pair$599/pair
Athlon 64 X2 6000+ (3.0GHz, 125W, 2MB total dedicated L2 cache, 2000MHz HyperTransport™ bus, socket AM2 )$178$241
Athlon 64 X2 5600+ (64-bit, 2.8GHz, 2MB total dedicated L2 cache, 2000MHz HyperTransport™ bus, socket AM2) $157$241
Athlon 64 X2 5200+ (64-bit, 2.6GHz, 2MB total dedicated L2 cache, 2000MHz HyperTransport™ bus, socket AM2) $136$188
Athlon 64 X2 3800+ (64-bit, Energy Efficient, 2.0GHz, 1MB total dedicated L2 cache, 2000MHz HyperTransport bus, socket AM2) Not included$83
Athlon 64 X2 3800+ (64-bit, 2.0GHz, 1MB total dedicated L2 cache, 2000MHz HyperTransport bus, socket AM2) Not included$83

Source: AMD


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