AMD's latest processor for low-cost PCs is priced at $US129 in lots of 1000. The company also lowered prices on the 850MHz and 800MHz versions of the chip, to $US111 and $US90 respectively, in 1000-unit quantities.
In comparison, Intel's 800MHz Celeron processor costs $US112 in quantities of 1000, according to the company's 4 March price list.
"This shows that we are at the top end of the speed curve," said AMD spokesman Jens Drews.
AMD has discontinued all processors operating at clock speeds below 800MHz, Drews said. Intel still lists prices for 566MHz Celerons.
Compaq will include the 900MHz Duron chip in its Presario 5000 series of desktop computers, according to a statement from AMD. The chip is also available in computers from other companies including Time, Tiny and Maxdata, the company said.
Drews didn't expect AMD to retain its price and performance advantage for long, saying he expected Intel to announce speedier Celerons and price cuts shortly.