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AMD, Intel Slash Prices

Intel and Advanced Micro Devices both swung their axes last week during one of the biggest weeks in processor platform price cuts in the past two years—and more reductions are potentially in the works.

Intel, Santa Clara, Calif., clipped pricing on its highest-volume product this year, the Centrino mobile platform, by more than 30 percent in some instances. It also made less drastic cuts for chips in its low-end Celeron lineup.

For example, the price for Centrino 770, which includes 2 Mbytes of L2 cache, a 2.13GHz processor with an 915 GM chipset and an Intel Pro/Wireless card, was cut almost 31 percent to $485 from $700.

AMD, Sunnyvale, Calif., also enacted price reductions throughout its product line last week. Within its dual-core desktop line, for example, AMD cut pricing on its Athlon64 X2 dual-core chip to $902 from $1,001, a 10 percent cut.

“Our goal is not to be the low-cost provider to the market,” said Kevin Knox, AMD’s vice president of commercial business. “If that happens, so be it. But we want to be the price-performance leader.”

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