Intel will cut prices 50%
by staff -- Purchasing, 6/13/2007 10:15:00 AM
Intel, the world’s largest chipmaker, will slash its prices even further in its ongoing market share battle with Advanced Micro Devices (AMD). Intel will cut prices of its Core 2 Quad processor by 50% on July 22, according to an Intel document given to clients and reported on Bloomberg. The Core 2 Quad chips were introduced in November to run servers and the most expensive personal computers and sell for $530 each. Intel also told customers it plans to reduce prices of some Core 2 Duo chips by 24%-32 % on Sept. 2, according to the document.
Some analysts feel the price reductions are too drastic, but others downplayed the move. “Especially in the PC segment, price cuts, even dramatic ones, are par for the course,'' Brian Piccioni, a Toronto-based analyst for BMO Capital Markets said. “So this is not particularly surprising or ominous.''
The Intel move comes a week after AMD’s Henri Richard, executive vice president and chief sales and marketing officer, vowed to “resume a more robust market share. You'll see us rebound for sure," he said in a recent Reuters report from the sidelines of the Computex computer show. Sunnyvale, Calif.-based AMD is banking on its next-generation Barcelona chip, due out later this year, to hit back against Intel in its market share battle. In late May, AMD announced that Toshiba would be using AMD chips in laptops both in the U.S. and European markets.
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