Intel to Cut prices by 60 percent!

[Negative Design]

Intel to Cut prices by 60 percent

Intel customers have been informed that the company is prepared to cut prices on its Pentium processor range by up to 60 per cent in order to reclaim lost market share from AMD.

According to Micro-Star and Gigabyte, two of Intel's biggest Taiwan partners, the chip maker is planning on announcing the price cuts on July 23rd. The Intel reaction comes as AMD increased its share of the processor market last quarter by 20 per cent for the first time in four years.


Source

AMD's cuts make sense after this I guess...

[AruisDante]

This is a repost. But yeah, Intel is really trying to fight back hard. Not that it really neads to, what with Conroe and all... but it defenitly makes cheep folding rigs even more atractive. Can you say sub $300 930 based rigs?

[Negative Design]

They're fighting back for market loss conroe won't fix that till its actually launched,this is a smart move by intel.

[Culex]

Yes. P4's will be incredibly cheap. That's nice.

This is going to hurt AMD. But Just about every vendor will buy an Athlon64 over a netburst product.

And they'll want to sell all their netburst inventory and push it all out before buying more since their inventory will be devalued by this price slashing.

[Conroe]

Intel price cuts conceal money making scheme

Originally Posted by INQ

Except that it actually may not be cutting average prices at all. Remember, this is about flat pricing, and what you and I pay is probably a lot more than what Dell pays. One look at a price sheet versus a Dell circular shows that you can't make a box that cheaply, or inexpensively, if you wanted to. Anyone want to bet that Dell paid less than half of what you can get that same CPU for?
So, with the introduction of the flat pricing model it actually raised the numbers on the largest of their customers while lowering it for less than half the buyers. When the sneaky maths is summed up, it's probable Intel will end up making more money than it did before the price cuts.

Lol, Intel may have raised Dell's prices with their flat rates, and end up making more profit. Dell goes AMD. Nice though, everybody gets the same price. Retail will just get some more markups.

[AruisDante]

Either way, expect another big bang announcement from Dell as soon as Wall Street needs to have a shiny thing dangled in front of them as a distraction.

That makes me laugh.

But yeah, this messes up Dell's uber cheep PC profit margins... But I don't mind Intel screwing Dell over for our benefit.