Intel says “We’re all that and a bag of (cheaper) chips”

Intel_pentium_2We mentioned earlier that Intel was going to battle losing market share to AMD by slashing chip prices and the details are now available. Needless to say, AMD is going to have to find some way to battle back as Intel is putting a tremendous amount of performance and pricing pressure on their competitors. According to ZDNet, a 3.4 GHz dual core Pentium D 945 is priced at $163, in quantity of course. This price is not only less than current and slower Intel processors, but the fastest clocking and comparable processor AMD offers is nearly a grand, or just more than five times this price. Although AMD has made huge market share gains, they’re fighting against the momentum and economies of scale that Intel enjoys. My only hope now is that the lower end and mobile chipsets follow suit so we can start to see additional price decreases in the UMPC market.



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