It appears that the price cuts made the previous week by Intel and AMD were in vain, as the strategies might not influence the total sales for the next quarter. Moreover, several studies, confirmed by AMD officials, showed that the total processor unit shipments were down 4% compared to the previous quarter because of low seasonal demand.

Even if the processor market segment leaders did diminish the purchase prices for their products, they could face several issues if the estimated increase in sales fails to become reality, and it was also reported that they currently encountered other falling prices cut revenue.

"During teleconferences last week by both Intel and AMD, executives pointed to pricing pressures-particularly in the PC market-as a primary reason that neither met original growth targets for their second quarters. Both companies expressed optimism that improved demand generally associated with back-to-school sales in the third quarter and holiday purchases in the fourth quarter will improve their bottom lines," reports Information Week.

"It's really a public reflection of the ordinary pricing battles that go on between the two companies to get customers," said McCarron, a renowned analyst cited by Information Week. "These public cuts tend to have dramatic jumps, but the reality is the [price reductions] are going on continuously and a lot of times [the formal pricing] is just bringing it in line with what they've really been selling this stuff for over the past several months."

Intel cut prices at the end of last week when it has also launched its latest Core 2 Duo processor line-ups, the company's most expensive and highest performance series which has been already adopted by more than 400 workstations manufacturers.

AMD, on the other hand, doesn't benefit from a peaceful quarter, as it has also acquired the second ranked graphics cards manufacturer - ATI and must integrate the latter into the company's infrastructure.