AMD slashes CPU prices

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AMD slashes CPU prices

In a move to counter Intel’s 550MHz Pentium III debut, Advanced Micro Devices Inc. revealed steep cuts – up to 45 percent – across its PC processor product line.

The reductions leave the company’s most expensive processor, the 450MHz K6-III, at a price of $220 – almost half off its former price tag of $397.

The prices on AMD’s other chips fell from 18 percent to 29 percent.

The price cuts will make it harder for AMD to hit its stated goal of an average CPU selling price of at least $100. The company has failed to meet that profit-boosting goal ever since it released the K6 processor series, and the average selling price right now for its chips is about $80.

AMD’s current prices place its K6-2 processors slightly below that of Intel’s Celeron chips, while the K6-III is well below the price of the Pentium II and III.

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