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Advanced Micro Devices recently said it would not cut the prices on its microprocessors in close future. In a bid to be “transparent” and “predictable”, the company does not want to further reduce the pricing, possibly because it not only affects the world’s No. 2 maker of chips, but also because it makes business of small system builders uneasy.

AMD, who has been reducing the pricing of its microprocessors for several quarters now after its chip lost performance crown to Intel Core 2-series products, now believes that even though Intel will cut down its prices on July 22, it needs no further decrease of pricing shortly.

“We’ve tried to be very transparent on price actions. Things got crazy last year, but this year we made it a point to provide the channel with what it wants, which is a predictable business, a stable business. We communicated that price move well in advance to our channel partners. We haven’t announced our next price move yet, so take that at face-value – another one is not imminent,” said Gary Bixler, AMD’s director of marketing for North America, in an interview with CRN web-site.

The world’s second largest maker of central processing units usually notifies its clients regarding an incoming price-cut, but sources familiar with the company’s ongoing plans do not expect any price-reductions shortly.

Given that back-to-school season is getting closer and demand towards personal computers may increase substantially soon, AMD may not need any price-cuts in order to sustain its normal sales.

Discussion

Comments currently: 2
Discussion started: 07/19/07 02:41:09 PM
Latest comment: 07/19/07 03:15:36 PM

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1. 
So...DAAMIT is saying it cant cut prices anymore or go broke?
[Posted by: Joz  | Date: 07/19/07 02:41:09 PM]

2. 
The funny thing is that AMD just recently dropped their prices already. The recent drop that happened last week was to compete against Intel's Jully 22nd Price drops... We can't say that AMD is not price watching and competing because it just recently happened. If Intel has another price drop Post July 22nd and AMD doesn't drop theirs then we could complain and say that "AMD gave up on the pricewar". For now AMD has recently reacted to Intel's July 22nd price cuts and might I add, very competitively. AMD's PRICE for PERFORMANCE already exceeds that of Intel's offerings. Intel hasn't announced any new desktop price cuts for the next few months, so there is no need for AMD to do so either. I don't believe Intel has much room left to cut desktop prices after these July cuts. Could be pretty quiet for a while with most of the mainstream Penryn-based desktop CPUs and Phenom CPUs not arriving until Q1 2008.
On another note by the time Intel has another "price drop" AMD will already have their new CPU's(Phenom(K10)) out to compete and will not focus too much on the previous generation CPU's, but on current ones.

There...
[Posted by: Jeff007245  | Date: 07/19/07 03:15:36 PM]

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