
Since Intel has introduced the new Woodcrest architecture for servers, AMD lost the last place where it still maintained the winner title. That's why AMD
decided to cut prices in the server field especially in the dual core area. Generally, Opterons have lost about 20% to 30% of their original price in 1000-unit quantities but several models - such as 200 and 800 series designed for 2-way, respectively 8-way servers - have slimmed down even more, as now, some models cost even less than 50% of their previous prices. The reason for this, beyond the fact that Woodcrest CPUs increased INTEL sales a lot in the past two months, resides in AMD's need to prove that it still has the most cost-effective server CPUs. Keep that in mind - besides the fact that 65nm CPU both for server and for desktop are almost fully developed - and you'll have the big picture: AMD still holds its ground. At least until Intel decides to cut prices on its own yard.
As a result of price reduction, AMD's server flagship AMD Opteron 8220 SE costs $2149 in 100-unit quantities, with a price drop of $500 from its original price tag. The same picture with 8218 now priced at $1514, 30% lower price-point than before. As for 2-way server CPUs, the 220 now costs 768$ down from its original price of $1165.
It seems that AMD is thinking in a very cost-effective manner, and not only when it comes to server CPUs. A few days ago, AMD has also reduced the price of some mobile CPUs, slashing prices from 4-36% according to their webpage info on the CPUs pricing.