AMD, Intel cut prices

— 1:11 AM on January 25, 2000

Processor prices are dropping again as AMD and Intel try to walk the fine line between undercutting the other guy and triggering an all-out price war. Pentium IIIs and Athlon have both become more affordable. From's report:

Intel cut prices on its Pentium III line by up to 31 percent, the latest salvo in an escalating battle between the chip giant and Advanced Micro Devices in the high-end processor market.

The price cuts, which went into effect yesterday, fell mostly in the 20 percent range. The 733-MHz Pentium III, for instance, dropped 21 percent, from $754 to $594, in volume quantities, while the 650-MHz dropped from $562 to $423, a 25 percent discount.

AMD, meanwhile, followed with cuts up to 31 percent on the Athlon family and cuts above 50 percent on its mobile line, said a spokeswoman. Discounts on PCs will likely follow.

Even with these cuts, it looks like AMD will keep Athlon prices below PIII prices, MHz-for-MHz.
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