Original URL: http://www.reghardware.co.uk/2007/03/23/amd_price_cuts_coming/
AMD to axe prices in April?
Market watcher forecasts cuts
23rd March 2007 11:27 GMT
AMD will cut the prices of entry-level 90nm processors on 9 April by between 30 and 35 per cent, a US investment bank has claimed.
San Francisco-based Thomas Weisel Partners (TWP) recently told investors AMD's inventory levels of these chips remains high, suggesting to TWP analysts a further round of price cuts is in the offing, DigiTimes reports (http://www.digitimes.com/mobos/a20070323VL202.html?www.reghardware.co.uk).
AMD has implemented three rounds of price cuts this year already, trimming Athlon and Sempron prices in January (http://www.reghardware.co.uk/2007/01/22/amd_cuts_cpu_prices/), followed by Opteron and further Athlon cuts (http://www.reghardware.co.uk/2007/02/12/amd_price_cuts_feb_07/) in February. The cuts have come as arch-rival Intel has aggressive pruned its own prices, part of a fight that's harmed both companies' bottom lines.
In January, AMD reported its first quarterly loss in two years (http://www.reghardware.co.uk/2007/01/24/amd_sacked/). Its announcement came a week after Intel reported a 39 per cent decline in profitability.