Advanced Micro Devices cut prices on a number of its dual-core server processors, while Intel offered instant rebates on select dual-core desktop CPUs.

AMD last week knocked down prices by more than 40 percent on a range of its dual-core server processor models. For example, AMD cut the dual-core 870HE model by $1,135 to $1,514. The 2GHz 870HE is for four- to eight-socket servers and offers a lower power envelope, compared with a typical 95 watts for similar dual-core Opteron parts.

Several other 800 series processors also were reduced, including the 95-watt 1.8GHz 865, to $698 from $1,165.

In addition, AMD cut prices on its dual-core processors for servers using one or two sockets. Among the cuts were the 2.4GHz 280, which was reduced to $851 from $1,299, and the 275, lowered to $690 from $1,051.

The price changes (see chart below) were confirmed by an AMD spokeswoman and are available on the Sunnyvale, Calif.-based company’s Web site. All prices are for low quantities.

Earlier this month, Intel launched a promotional discount on three dual-core desktop models for the channel.

The Santa Clara, Calif., chip giant is offering an instant rebate of $80 on the 840, a 3.2GHz Pentium D priced at $530 in low quantities. Other discounts include a $60 instant rebate on the 830, a 3GHz Pentium D, and $40 on the 2.8GHz Pentium D. The promotion lasts through April 22.

Intel has said publicly that it aims to transition the market to dual-core processors quickly by offering aggressive pricing on its newest processors. The company is scheduled to ship its second-generation dual-core server processors with hardware-assisted virtualization for the new Bensley platform in March, with servers showing up in the first half of the year. AMD is expected to ship its dual-core processors with virtualization technology in the first half as well.

AMD Model Number Price as of Jan. 23 Price as of Feb. 13 Price Drop 152 $799 $637 $162 180 $799 $637 $162 265 $690 $316 $374 270 $851 $455 $396 275 $1,051 $690 $361 280 $1,299 $851 $448 260HE $851 $455 $396 265HE $1,051 $690 $361 270HE $1,299 $851 $448 865 $1,165 $698 $467 870 $1,514 $873 $641 870HE $2,649 $1,514 $1,135 865HE $2,149 $1,165 $984 860HE $1,514 $873 $641