Intel To Slash Prices Up To 60%

Chuan-kai Lin writes "According to Bloomberg, Intel will slash product prices by up to 60% in order to regain market share captured by AMD." From the article: "Intel said it will reduce prices of faster dual-core chips by about 15 percent, according to Alex Lin, a product marketing manager at Micro-Star, Taiwan's third-largest maker of motherboards, which connect electronic parts in computers ... Shares of Intel have fallen 33 percent since Otellini succeeded Craig Barrett in May last year. Advanced Micro's stock has gained 77 percent during the same period. Intel fell 31 cents to $17.08 at 12:06 p.m. New York time in Nasdaq Stock Market composite trading. Advanced Micro dropped $1.55, or 5.5 percent, to $26.45 on concerns that Intel will lower prices."

Comments

My god

[thePig]

Does this mean, I was paying up to 160% more than what I should have, till now?
Grrrrrrrrrrrrrrrrrrrrr.

Re:My god

[morethanapapercert]

which of course means that once they have enough of the market back in the palm of their hand, it'll be time to resume squeezing......

Re:My god

[Surt]

No, it means you already bought your chip. Prices change. No doubt if you bought a pentium 1 on the day it was released all those years ago for $600 you're feeling like a real rube now that you can get them essentially for free?

Just accept that you amortized the higher price you paid with the additional CPU cycles you got by not waiting.

finally

[ystar]

It's about time! Intel has been gouging prices for too long. AMD's chips have repeatedly performed better than Intel's chips at a lower cost. It's good to see Intel learning from their mistakes, and the new Conroe and Merom architechtures have a lot of promise in them. (Lower prices are only going to make the R&D budget tighter, though, which will continue to hurt Intel even more in the long run.)

capitalism!

[minus_273]

yay! capitalism! good.

I have to wonder

[Conspiracy_Of_Doves]

I have to wonder how Intel is going to rationalize it when people STILL choose AMD over Intel.

Today's a good day to buy AMD stock, then!

[larsoncc]

Hey, news that Intel is dropping prices a bit doesn't change the near-to-mid term outlook for AMD. They produce some of gaming's monster chips, and power users know that. They continue to establish high profile deals, and they're still leading the move to 64 bit.

Jeez, a buck and a half off of shares. Buy!

(what do you think?)

Too late

[sidfaiwu]

AMD has already captured this share of the market (me). Their chips have provided my home assembled computers with excelent processing power, no glitches, and at a lower cost.

Quite Possibly

[WombatControl]

It will either mean cheaper Macs, or Macs with more features for the same price.

Remember that Apple is not a company that tries (too hard) to compete for the bottom end of the market. Even the Mac mini isn't designed to compete with a bargain-basement Dell. Apple might very well cut their prices with cheaper chips, or they might sweeten the deal with larger hard drives, making the low-end mini use a Core Duo rather than a Core Solo, etc.

However, as a Mac owner and someone who's looking to replace an iBook with a MacBook (Pro) in the near future, this is good news indeed.

Price cut or garage sale?

[Gadzinka]

I'm too lazy to RTFA (hey, this is /. ;), but isn't the price cut the same I've read couple of days ago, which basically boiled down to cleaning up inventory of crappy Netburst processors (a.k.a. Pentium D) in order to focus on PentiumPro-derived Core architecture? Yeah, go buy yourself dual core netburst processor. With both cores communicating via external, shared FSB...

Gawd, I was afraid that Intel would never put to sleep this monstrosity...

Robert

This should have hurt Intel's stock more than AMD

[attemptedgoalie]

This would imply a significant source of free profit is being slashed. They're going to hope to make it up in volume, but they've got an uphill battle. Less profit in the stock should have reduced its value.

The amount of profit they had built in could absorb a class issue in the past. Now, an expensive problem with their chips could hurt their company even more. No more soft landing.

They have to prove they're better than AMD. While there are some that will buy the big name with the new pricing, there are a lot more that will stick with AMD.

The prices drops are for the P4

[ajiva]

Notice that the price drops are the same day as when Core 2 Duo is released (July 23rd), that means
the price drops are on the older P4s. That's great if you don't mind getting a P4, but Intel is doing what any other company would do. Drop prices on older products to clear out space for newer ones. Makes sense.

AMD is laughing

[popsicle67]

Intel could give the damned things away and I'll still buy AMD. Along with cheaper power the company also has a lot of good board makers behind it. I couldn't believe it when I could build a screamer with second string stuff for nothing darn near. I had been a faithful Intel drone for years and turned my brain off to everybody saying good things about AMD, a bad socket 7 box years ago, so I was surprised at how well low end stuff was doing against intel's best. I got a sempron 3100+ in a biostar Tforce 6100 skt754 1 gig3200 ddr and a nvidia 6600le pcie card. It blows everything away including the dell xps my dad got this year. Intel will have to really blow everybody away to get market share back,cheaper crap is still crap

Price correction? How about old-model clearout!

[Mr.Fork]

This is NOT a price drop but a price correction for Intel since they've introducted a new product line. Sort of like when Chevy does for their 2007 models arrive this fall with their 2006 still on the floor. It's NOT a 'let's get our marketshare back from AMD' but a 'oh crap, we still have a tonne of P4 chips left. Sheesh!