Wednesday, June 13, 2007

Intel forced to cut prices

Intel Corp, the world's largest chipmaker, plans to slash prices of some processors next month and in September to regain market share from Advanced Micro Devices Inc.

The company told customers it will cut prices of its high- end Core 2 Quad processor by 50 percent on July 22, according to an Intel document given to clients. The chips, introduced in November to run servers and the most expensive personal computers, sell for $530 each, according to Santa Clara, California-based Intel's Web site.

Last quarter AMD increased its market share to 20 percent. This is the first time AMD has seen market shares this high in more than four years. With Dell now buying AMD processors in addition to Intel processors, Intel may be in for some lower numbers, at least until Conroe hits the shelves.

Intel, being aggressive about their market share, has decided to cut back prices on their higher end dual-core chips by 15 percent. Lower end Pentium processors will see price cuts by 60 percent. This may also provide Intel with the avenue to get rid of some older processors to make way for its much anticipated Conroe core.

``When Intel wants to chase market share, they make these cuts to hurt Advanced Micro directly,'' said Albert King, who owns Intel shares among the $10 million he manages as chief investment officer at Prophet Capital Inc. in Taipei.
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