The company operated the second price cut in two weeks, placing its CPUs below Intel's Core 2 Duo models

Sep 9, 2008 08:18 GMT  ·  By

Advanced Micro Devices announced yesterday new additions to its triple-core processor lineup launched earlier this year. The new desktop chips the manufacturer unveiled are the Phenom X3 8750 Black Edition, which features a Clock Multiplier Control and tunable performance, the energy-efficient (65 watt) Phenom X3 8450e and Phenom X3 8250e microprocessors. The Sunnyvale company stated that the new models are designed mainly for gamers and digital content creators.

The announcement of the new CPUs comes in a period when the company is reported to face financial difficulties and rumored to be on the verge of spinning off some of its manufacturing facilities. According to Dan Olds, principal analyst at Gabriel Consulting Group Inc., the triple-core chips are a welcome addition to the company's offerings, although AMD's technology is known to be left behind by that of its direct competitor Intel.

“They do fill a slot in the market, providing a balance of price vs. power,” Olds added. “They'll be speedy enough to handle demanding games and applications, but at a reasonable price.” The selling price of triple cores is AMD's main weapon against its competition. To make things even more interesting, the Sunnyvale chip maker has also announced that it is cutting prices for some of its products from the triple-core series.

The new prices of the triple-core processors make them strong competitors for Intel's Core 2 Duo series. AMD's X3 8450 ($104) has a cost between Intel's 45 nm dual-core E5200 ($84) and the Core 2 Duo lineup, which starts at $113. Also, X2 dual-core CPUs from AMD are priced between $66 for the 5000+ version and $92 for the 6000+ chip.

The Sunnyvale company has four regular triple-core processors featuring a 95 watt TDP which experienced price drops. Beside the X3 8450, which goes now for $104 (down from the $125 price in July), there are the X3 8650 for $119 (down from $145), the X3 8750 for $129 (down from $175) and the new X3 8750 Black Edition with overclocking support, priced at $134. The prices for the new X3 8450e and 8250e processors have not been disclosed yet.

According to PriceGrabber, the lowest retail prices for the makers of triple-core CPUs are within 5% of AMD’s tray prices. The triple-cores can be considered bargains on today's PC market. A 2.4 GHz X3 8750 would offer only six percent less performance than a Core 2 Duo E6850 3.0 GHz, but the first sets you back only $129, while the E6850 sells for $183, as Intel's latest processor price sheet shows.

The new price cut is the second one operated by AMD in the last two weeks. Although some feared that the company could not keep average selling prices of its processors at high levels, it seems determined to prove somehow that it has enough 65 nm production efficiency to sustain price drops for its most important line of microprocessors released this year.