AMD thumped by price war; 'Barcelona' may help

Summary:Can AMD's first quad-core processor--Barcelona--due in mid-2007 give it more ammo against Intel in a pricing war? John Spooner thinks so and argues as much in the ChipLand blog.

Can AMD's first quad-core processor--Barcelona--due in mid-2007 give it more ammo against Intel in a pricing war?

John Spooner thinks so and argues as much in the ChipLand blog. AMD issued a profit warning and has been widely panned by Wall Street. To wit:

"While we estimate AMD desktop and notebook units grew healthy double-digits, we also believe it is likely AMD saw ASP declines. As Intel has been ramping up its competitive dual-core Core 2 Duo, AMD likely saw the most pressure in its own dual-core products," says UBS Equities analyst Uche Orji, who adds that Intel isn't likely to see pricing pressure.

Bottom line: All AMD has to do is get its pricing up. Easier said than done, but the best AMD can do is to hold the fort for a few more months. Once Barcelona enables AMD to raise prices the outlook should get better.

Topics: Processors

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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