February 11, 2007 9:00 PM PST

Prices fall on AMD desktop chips

Advanced Micro Devices slashed prices on desktop processors Monday, as new manufacturing technologies make it easier to swallow lower prices.

The cuts, as much as 35 percent on high-end dual-core Athlon 64 X2 processors, come just weeks after AMD made a similar pricing move. They also come after the chipmaker reported disappointing fourth-quarter results due to pricing pressure in the server market.

Price wars in the PC industry are great for buyers, but always ugly for those directly involved. Intel and AMD have been undercutting each other for almost 12 months now on price, as Intel cleared its decks in anticipation of its Core 2 Duo processor launch and AMD followed suit to stay competitive. Both companies took hits to their gross margins as a result, but AMD has been hurt a little more, as it makes the transition to a new manufacturing technology.

AMD's new 65-nanometer manufacturing technology is now cranking out chips in greater numbers, said David Schwarzbach, division marketing manager for desktops at the Sunnyvale, California-based company. The 65-nanometer technology allows AMD to build smaller transistors and reduce the size of its chips. Intel and AMD cut their chips from circular silicon wafers. Making smaller chips means you can get more processors from the same wafer, lowering the cost of building a single chip.

But Intel has had 65-nanometer manufacturing technology in place for more than a year now, while AMD didn't start building 65-nanometer chips until late last year. It takes a few months to get a new chipmaking technology up and running. But now that it's a little more mature, AMD can make more profit on some server and desktop chips, or make the same profit on lower prices.

The new prices reflect chips bought in quantities of 1,000 units, not necessarily what individuals might pay at the local electronics store. The steepest drops came on the highest-performing chips, but every dual-core desktop model was affected. A complete list is available on AMD's Web site.

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AMD, manufacturing, pricing, dual-core, Intel


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HA HA HA and when you do the math - still not worth it
When you consider the actual performances of amd's primary competitor, Intel, the Conroe is a slam dunk, hands down.

They could drop the price to 'FREE' on most of their cpu's and still for the overall cost of an amd machine, you would be far better off purchasing an Intel.

Now conjoined with another technological loser, ati, they are fitting patners in a diminished capacity, punchdrunk IT has-been.

Out of 5 gaming rigs I own, I have observed the ridiculous and futile slide by both amd and ati. 4 of the pc's contain amd-ati components acquired over the past when the two companies seemed to be able to keep their heads above water technologically speaking. The 1st one purchased is an Intel based with Nvidia and the best, most solid performer of the bunch.

I did not divest myself of the ati marque soon enough and have a so-called "cross-fire solution" that has been not only problematic from the start but easily a very poor performer, actually having to turn the video settings down in all games even though the top of the line, asus 2 x 16 pci-e mother board is used.

What is the most unacceptable, unprofessional and cheap lowdown aggravation to all this now that I have tried to seek remedy - is the ABSOLUTE LACK OF SUPPORT, CARE AND SOLUTIONS actually provided by either company, despite escalations.

HAHAH watch the absolute bs, hyperbola and rhetoric in the "amd: Performing customer-centric innovation" video here at CNET if you want to be completely disgusted.

Never Again!!!!
Posted by Dragon Forge (96 comments )
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But you're missing the point...
The main thing Mr. Dragon Forge is missing, is that Intel sucks...
You can say that Intel is better, but it never is or will be. Go back and look at the dual core chips Intel was pitiful, AMD took them by the balls and ran, which is what will happen this summer.
Never count AMD out of the race, they will always come back, and always win.
Posted by vanquished...again (9 comments )
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