AMD Drops Desktop Chip Prices

Advanced Micro Devices, which announced a change in the pricing structure of several of its dual-core Opteron chips Feb. 7, is preparing to lower the prices on several of its dual-core and single-core desktop Athlon processors.

The lower prices will primarily affect the Sunnyvale, Calif., chip maker’s dual-core Athlon processors. However, the price restructuring will also lower the prices of some single-core Athlons, as well as a pair of Sempron processors.

AMD has been involved in an ongoing price war with Intel, of Santa Clara, Calif. While dropping prices have been good for customers, the battle with Intel has taken its toll on the bottom line as AMD explained in its fourth-quarter results released on Jan. 23. Part of those losses stemmed from sluggish sales of its servers chips.

However, the company’s quarterly results and a study by Mercury Research showed that AMD had gained more ground in terms of desktop shipments. With these additional price cuts, the company can show a better price performance comparison to Intel’s Core 2 Duo and Pentium D offerings for desktops.

Read the full story on eWEEK.com: AMD Drops Desktop Chip Prices.