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Babrbarossa March 19, 2007 02:26 PM

AMD Likely To Cut Prices Further
 
This doesn't seem wise to me as the market has already been swamped with processors in the last four months- I would think that further dumping at a lloss will only serve to cut into potential buyers of their upcoming architecture when it arrives- as a new shareholder I am watching anxiously...

"Another round of discounts are likely from Advanced Micro Devices in its price war with rival Intel, a move that could further erode earnings of the semiconductor maker.
Research suggests that further price cuts by AMD (nyse: AMD - news - people ) are "imminent," according to Sumit Dhanda, an analyst at Banc of America, in a Monday research note.
Dhanda said the cuts would likely occur April 9 and will most likely cover the company's desktop products including Semprons and Athlon X2s, with cuts ranging from 26% to 42%.
AMD chief executive Hector Ruiz has been adamant on reaching a long-held goal for the company of controlling 30% of the market. To accomplish this, he has led the company into a brutal price war with rival Intel (nasdaq: INTC - news - people )."

More from Forbes

sswilson March 19, 2007 02:31 PM

Strangely enough I was just reading in MaximumPC today that in spite of the performance beating AMD took from the Core 2 Duo, their market share continued to climb in the last quarter. (Obviously has something to do with price point).

Babrbarossa March 19, 2007 03:07 PM

Yeah- and their share prices jumped a little after that news, and then declined again- the problem is that intel is dominating the high-end market right now, and the price war isn't affecting that- I think that shares are artificially low right now- that's why I bought- I think the integrated graphics is going to be where they start finding their niche- while not as glamorous, it's a huge part of the market.

ScytheNoire March 20, 2007 03:31 AM

AMD purchasing ATI served a few purposes actually. The most important was chipsets, allowing AMD to now make their own motherboards, and including integrated graphics with them. They can now sell entire AMD systems without relying on their enemies.

They have expanded their product and marketplace by a huge amount, with their hands now into laptops, cell phones, consoles. Some might argue they have expanded themselves too much, but remember ATI was operating on it's own, they are just learning to work together now.

But I think in the future it could have bigger implications. Think about socketed GPU's. It's been an idea tossed around before, but often knocked down because of the idea that memory need a fast direct connection like you have on a graphics card. But you never know, with the increasing power requirement.

But AMD is now competing with Intel and nVidia, and they want to take away Intel's integrated graphics lead, and become the leader in both CPU and Graphic sales.

But Intel is looking to re-enter the descrete graphic mark, to compete with ATI and nVidia.

Whatever happens, it's all just insane. Something is always happening in the computer market. It's far more exciting than the console market.


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