One Year Ago: AMD vows to continue undercutting Intel

This story first published June 12, 1997

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."