AMD cuts its prices

AMD has reduced the list prices of several of its desktop Athlon 64 X2 and Sempron processors

AMD lowered the list prices of several of its Athlon 64 X2 and Sempron processors for desktop PCs this morning, according to its processor pricing Web page.

Most of the chipmaker's price cuts--which involved all of its various processor permutations, including its latest 65 nanometer versions and its energy efficient models--were relatively small and dropped the chips' prices by between $11 and $27 each. However, AMD lowered the list price of its Athlon 64 X2 5200+ by a substantial $108. That chip's price moved $403 to $295. I'll note that AMD's list pricing for desktop chip reflects processor-in-box packages (a processor, a heat sink and a fan) sold in 1,000 unit quantities. That means street prices are likely to be different and, in most cases, higher as retailers mark them up slightly to turn a profit.

The remainder of the price cuts were as follows:

Processor                    Dollar reduction    New price

Athlon 64 X2 5000+        $16                    $285

Athlon 64 X2 4800+        $27                    $244

Athlon 64 X2 4600+        $25                    $215

Athlon 64 X2 4400+        $11                    $203

Athlon 64 X2 4200+        $14                    $173

Athlon 64 X2 4000+        $11                    $158

Athlon 64 X2 3800+        $14                    $138

Sempron 3200+             $16                    $51

Sempron 3000+             $15                    $41

AMD’s transition to 65 nanometer manufacturing is helping it to lower the prices on its desktop chips, which have been the first chips to begin the transition from 90-nanometers. The lower prices will make AMD's chips more affordable for the range of its customers, whether they are build-it-yourself enthusiasts or major PC makers such as Hewlett-Packard (who I am assuming got similar price reductions on the chips it purchased). The cuts also increase the chipmaker's price-performance equation when comparing its AMD Athlon 64 X2s to Intel Pentium Ds and Core 2 Duos. However, given the competitive pricing situation we saw during the fourth quarter--an intense battle between AMD and Intel in the desktop space--the chipmakers' official price lists are likely to be the lagging indicators.