It seems that AMD will start cutting prices for a wide range of products later this month, accepting the ‘ultimatum’ Intel gave last month when it officially stated it will lower the prices for its processors, according to Digitimes.


The sources seem to be the motherboard manufacturers, which are regarded as being some kind of advisers. Consequently, Digitime writes:” After actively talking to motherboard makers in search of ways to counter Intel's price cuts, AMD has come up with a new pricing solution, despite tight production capacity and possible erosion of its profits, the sources said.”

In conclusion, AMD will cut costs for four models in its Athlon 64 single-core CPU series by 20-30% in mid June, and on July the 24th, AMD will reduce the prices for its Athlon 64x2 dual-core CPUs by 25-50%. The manufacturer’s low-end single-core Sempron series will also be 10-15% cheaper.

Moreover, the manufacturer will cut almost 50% of the prices for its Athlon 64x32 3800+ to US$152-161, compared to the US$163 that Intel plans for its Pentium D 945.

Intel announced at the end of the previous month that it will lower the cost of its dual-core microprocessors based on the aging NetBurst architecture - Pentium D - before it will release the company’s latest desktop chips, which boast low-power high-performance micro-architecture.

Consequently, starting the 4th of June, Intel will cut prices of Pentium D 960 to $224, while the models 930, 920 and 820 will cost $178.

The price cutting strategy was introduced by Intel not only to make some room for its “aging” Pentium D, but also to compete against its “biggest threat” on the market - AMD’s Athlon 64 X2 chips, which offer more advanced features than the ones featured by Intel’s products.