Intel, AMD Expected to Trim Chip Prices
Reflecting a continuing price war between Intel Corp. and Advanced Micro Devices Inc., No. 1 chip maker Intel plans Sunday to cut prices on its microprocessors, industry sources said.
Intel typically cuts prices on a few or several of its microprocessors on a Sunday and publishes the magnitude of those reductions on Monday as it announces new chips. But this time, the sources said, it will announce just the price cuts. Intel’s Pentium 4 chips running at 2.2 gigahertz will ship late in the fourth quarter and will be announced in January.
AMD will follow suit by trimming prices on its Athlon chips, sources said. Intel has lost market share through the first half of this year, dipping to below 78%. But because of the fierce price war undertaken by Intel against AMD, in the third quarter Intel regained 0.8 points of market share to 77.5%.
Intel’s fastest chip available, the 2-GHz Pentium 4, costs $562 in lots of 1,000 and will come down about 30% to $400, the industry sources said. The 1.9-GHz Pentium 4 also will come down in price.
Shares of Intel fell 24 cents to $25.86 on Nasdaq. AMD shares rose 8 cents to $10.34 on the NYSE.
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