AMD fights back in the chip price war

AMD changed the prices on its Web site Thursday afternoon, showing the changes taking effect retroactively from Monday.

The company dropped its top processor, the 1.33GHz Athlon, from $US350 to $US253, still more expensive than Intel's 1.4GHz chip, which it cut to $US193 on Sunday. All prices are per chip in quantities of 1,000, a standard industry measurement.

According to AMD's site, it also dropped the prices of its entire line of Athlon and Duron processors for the desktop. The prices for its Mobile Duron chips remain unchanged. The 1.3GHz Athlon chip was reduced from $US318 to $US230, in comparison, Intel reduced its 1.3GHz Pentium 4 to the same price as the 1.4GHz Pentium 4, in hope of pricing the 1.3GHz model out of existence, analysts said at the time.

However, while Intel reduced the prices only its Pentium 4 line, which includes chips from 1.3GHz to the recently announced 1.7GHz, AMD dropped the prices on all desktop chips. While Intel's 933MHz Pentium III for the desktop still costs $US193, AMD's 950MHz Athlon has been reduced to $US149, while its entry-level Athlon, the 900MHz, now costs $US140.

In the low-priced desktop processor war, AMD's Duron 900MHz dropped from $US129 to $US115, while Intel's top offering in its Celeron family, the 850MHz is $138. AMD also dropped the prices of its 850MHz from $111 to $US96, and the price of its 800MHz from $US90 to $US75.

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Douglas F. Gray

PC World
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