The high-end Athlon 64 FX models fell by $200 this week, with the top of the line costing $799 a pair. In the mid-range, the entire Athlon 64 X2 dual-core product line was cut to less than $200, with the exception of the 6000+ model, which went to $241 from $464.
In the low end, cuts in the Athlon 64 and Sempron product lines weren't as dramatic. Prices fell from a few dollars to as much as $40. The lowest price chip is the Sempron 3000+, which costs $31.
While price drops look like a drastic measure on the surface, they're a common occurrence in the semiconductor industry when new models are about to be released or when there's a big product push that later aligns with a back-to-school or end of the year holiday sale. Still, the latest price cuts don't seem to be in line with seasonal sales.
More likely, AMD is locked in fierce competition with the larger Intel, which started the price war last April as it tried to regain market share lost to AMD. By the end of last year, however, Intel had made a comeback with dual-core and quad-core processors.
Earlier this week, AMD warned that revenue in the first quarter would be less than a year ago because of falling prices and slower sales. AMD said it expected revenue in the first quarter to be $1.23 billion, $100 million less than the same period a year ago.