Intel's higher ASP, cash reserves, and sometimes even lower production cost for chips put it in quite an enviable position, especially in a slumping PC market. Intel certainly has the room to lower prices much further, provided they have the proper motivation from AMD to do so.
- Intel has more than ten times the amount of cash on hand as AMD.
- Intel's name allows it to sell processors at a 30-40% price premium.
- Intel chips' average selling price is almost three times that of AMD chips.
Really, it's quite impressive that AMD is able to compete, at least on a technology level, when it's working with so much less than Intel. However, much hinges on Hammer, and I'm crossing my fingers in the hope that competition remains brisk. Thanks to The Inquirer for the tip.