AMD and Intel set off price war

It has been made known that ADM is to readjust its production price in late July and October. Nearly half of its processors will be cut their prices, and the biggest depreciation will be 48.6 percent. On October 23rd, AMD will also cut the price of its newly presented 64bit Turion processor, with a reduction of between 16.3 to 25.8 percent.

At the beginning of last month, Intel made price readjustment in response to the ADM Athlon Series Processor. Insiders think as Intel presents the brand-new Conroe processor, a new price war will probably be initiated.

At the same time ADM's accusation of Intel will also recommence. It is reported that ADM has already appealed to German anti-monopoly agents and pointed out that Intel's business in Germany has not abided with the anti-monopoly laws of Germany. This is the fourth time that ADM has accused Intel of holding a monopoly position in the USA, EU, and Japan since a year ago.

AMD recently announced its sales data of the second quarter ahead of time. The data shows that AMD has realized a prospective turnover of US$1.21 billion, a growth of 52 percent over the same period of last year, but 9 percentage points lower than that of the first quarter. While the sales income of Intel in the second quarter is estimated to reach US$8.23 billion, falling by 11 percent in comparison to the same period last year. That in the first quarter was US$8.94 billion, 5 percent lower than the first quarter of last year. It is clear from the data that in the sales competition of 64 bit processors as well as dual core processing techniques, AMD has unceasingly seized market share from Intel.

On April 27th, Intel CEO Paul Otellini announced a 90-day internal appraisals plan. Some news speculated that, as a part of the plan, Intel would have 16,000 employees dismissed or transferred. On July 13th, this speculation had been confirmed. Intel claimed that they would cut 1,000 administrative clerks worldwide to cut cost and enhance the interior communicative and decision-making power. This action is simply a prelude to the worldwide staff-reduction of Intel aiming at launching more powerful competition with AMD.

By People's Daily Online