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AMD and Intel continue price wars
Intel may have an edge on rival chip maker AMD, but the latter showed that it has no plans to bail out of the chip wars just yet.
On Monday AMD unveiled a restructuring that will cut $500m in annual expenses. At the same time it cut prices for its Athlon processors by up to 60 per cent.
The two are directly related. AMD's earnings this quarter will miss analyst expectations by more than $200m because its profit margins have been sliced by its price war with Intel. By cutting expenses and lowering prices on the same day, the firm is signalling that it is digging in for a long winter.
It was clearly AMD's turn to respond. Intel over the past months has been gaining market share, partly because it is already shipping 65 nm quad core server chips where AMD won't release theirs until later this year.
But if AMD's boasting about its upcoming 65nm chips carries any weight, it soon will become Intel's turn to respond.
April 11, 2007 at 01:17 AM | Permalink
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