Intel Challenges AMD By Slashing Prices In Half

Shakil published 22 Apr 2008, 15:02 in main - 274 views

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Intel made a surprising spring price cut for some of its processors, such as the Q6700 Core 2 Quad or the Intel Xeon X3230. Some price cuts go as high as 50 percent, while other processors have had their price reduced by 30 percent.

The motivation for this initiative remains unknown, but Patrick Ward, spokesman for Intel, said most of the processors were built on the 65 nanometer technology, while Intel is now promoting its 45nm chips, Computer World reports.

“We’re transitioning from 65nm to 45nm,” said Ward. “We’re in the process of refreshing our line. If you see a 65nm [chip], it’s older technology and we’re moving from it.”

The price cuts include the Core 2 Quad Q6700, which dropped from $530 to $266, Intel Xeon X3230 also dropped from $530 to $266. Besides these significant drops, the Core 2 Duo E6850 now costs $183 from $266, while Xeon 3085 is now $188 from $266.

Under 20 percent price cuts include Intel Core 2 Duo E6600, down 16 percent from $266 to $224, Intel Core 2 Duo E4600, down 15 percent from $133 to $113, Intel Pentium Dual Core Processor E2200 down 12 percent from $84 to $74 and the list goes on.

Dan Olds, analyst at Gabriel Consulting Group Inc. told the same newspaper: “This really keeps up the pressure on AMD. Intel blankets the market from high end to low end, with multiple choices at almost every price point – each competitive with AMD on either performance or price or both.”

As AMD prepares its new 45nm line, so is Intel, by refreshing the current product line.

“They’re making sure they have a compelling price and/or performance value proposition in every segment where they compete with AMD,” Olds also said. “In short, it isn’t getting any easier to compete with Intel.”