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AMD: Read Our Lips, No New Price Cuts

Discussion in 'News' started by HellasVagabond, Jul 16, 2007.

  1. HellasVagabond New Member

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    An incipient price war between chip giants AMD and Intel may fizzle out after some midsummer skirmishing as AMD has no plans to further cut CPU prices any time soon, said Gary Bixler, AMD's director of marketing for North America.
    Intel is widely expected July 22 to cut prices on its three desktop quad-core processors and July 29 to its quad-core server SKUs. The Intel price cuts are perhaps all part of its own cunning plan, but they come on the heels of AMD's own round of price-slashing last week. There's no small amount of speculation that Intel's anticipated move is a reaction to AMD's, and from there the leap to predicting a brand new price war isn't a terribly long one.

    But all-out war just isn't going to happen, asserted Bixler, whose company cut prices to its range of dual-core Athlon 64 X2 and FX processors by as much as 33 percent last week.

    "We've tried to be very transparent on price actions. Things got crazy last year, but this year we made it a point to provide the channel with what it wants, which is a predictable business, a stable business. We communicated that price move well in advance to our channel partners. We haven't announced our next price move yet, so take that at face-value -- another one is not imminent," he said.

    Bixler added that the Athlon 64 price cuts were "not a reaction to anything that Intel had done."

    Sources in the white-box system builder community confirmed that AMD gave them several months of advanced warning on the July 9 price reductions. Those contacted by CRN said no such warning had been issued for more cuts.

    "I haven't heard about any more price cuts," said Mike Zabaneh, COO of Tangent Computer in Burlingame, Calif.

    Bixler also touched briefly upon several other topics in his interview with CRN. He would not give a hard date on AMD's release of Barcelona, the chipmaker's long-awaited quad-core CPU, simply reconfirming the corporate line on a late-August release. He gave a standard reply to questions about former ATI Technologies chief executive David Orton's surprise resignation last week from AMD just nine months after the two companies combined in a $5.4-billion merger, saying Orton wanted to some "some more time with his family."

    But Bixler did mention that AMD would be announcing "major enhancements" in August to its AMD Validated Solutions (AVS) program, though he would not give specifics. The AVS program was launched last year to confront problems the chip vendor had with sub-par platforms sold by third-party manufacturers.

    "With AVS, the idea is to give system builders a platform that is AMD-designed, tested, validated and supported from bottom to top. Initially, we did that with Taiwanese partners, but with the acquisition of ATI, we're taking it to new level, where we can offer the channel a full-on AMD chipset," he said.

    System builders were mixed about AMD's success in changing its shaky platform reputation. Zabaneh said the vendor was "definitely more stable than it has been in the past."

    "They had to come up with a program to validate the chipsets. It's helped. Any time you have those kinds of programs it makes the board manufacturers pay more attention to details," he said.

    But J&B Technologies' John Kistler wasn't ready to do business with AMD just yet.

    "We build all Intel stuff. Intel's three-year, next-day warranty makes them a slam dunk," said the owner of the St. Louis-based white-box system builder.

    "We used to do half-and-half. But if we found a buggy chipset, AMD would go, 'Yeah, we're working on it.' They don't ever tell us, 'You're stuck,' or 'You're screwed.' If anything, AMD support is just straight off a cliff."

    Source: CRN
     
  2. kwchang007

    kwchang007 New Member

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    Ugh, more bad news about AMD. I think they should cut prices...they are so close to releasing phenom, and not many people that know alot about technology are willing to buy a Athlon 64 right now because of that reason. I really hope Barcelona is great..
     
  3. jocksteeluk

    jocksteeluk New Member

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    come on Intel show Amd what your bollocks are made of, do another price cut to.
     
  4. a111087

    a111087

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    Amd's cpus are cheap enough...
     
  5. WarEagleAU

    WarEagleAU Bird of Prey

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    Are you kidding me, they dont need any more price cuts. You can get a bunch of different chips at a very cheap price. And with the new chips, it makes sense to leave prices as they are. I dont think any chip, aside from the FX 7X line is over 180 bucks if I remember correctly.
     
  6. yogurt_21

    yogurt_21

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    yeah and you had to see this coming, intel on a smaller process with more chips per wafer are able to supply more cpu's for lower prices vs amd on a larger fabrication process.

    no worries though it's getting really close to am2+
     
  7. HellasVagabond New Member

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    We always knew Intel had more room to cut prices....Intel never fell bellow 70% of global share in CPUs thus more money, thus more space for price cuts....Im surprised AMD managed so far with an average of 25% of global share in Cpus.
     
  8. laszlo

    laszlo

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    big fish small fish...

    the big one has fat resources and can survive easier and he don't like the little one because is eating 20% of his food :nutkick:
     

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