AMD vows to continue undercutting Intel

AMD will respond to Intel's planned deep price cutting and stay 25 per cent cheaper than it's arch-rival when new prices kick in on August 1.

European marketing manager for PC products Richard Baker said its scheduled cuts will adhere to its policy of taking a quarter off Intel pricing for performance-equivalent processors. That would mean, for example, a 200MHz K6 costing in the region of $190.

Baker said a likely casualty of the price wars could be Cyrix which is selling its 6x86MX chips at half the price of equivalent Intel parts. "If Intel's 166MHz Pentium MMX is $142, Cyrix will have to sell at about $70 and that's not far off the make price. At bottom, [the cost of manufacturing the chip] could be $50 or $60."

Cyrix was unavailable for comment.