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Intel fires first serious price salvo in AMD K7 war

Slash and burn...now it's AMD's turn

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SUMMARY Pentium II family dead, Pentium III/450 sent to gulag, fresh price action expected on mobile, server parts, further pressure put on AMD As revealed here earlier, Intel chose today to unleash a battery of price cuts in its high end Pentium III desktop family. (Story: Intel to announce fresh Pentium III prices) The price changes are a direct attack on AMD's recently available Athlon K7. They will be followed shortly by action in the mobile and server arenas, we are given to understand. Intel will keep its 600MHz .25micron Pentium III at the same price ($700/1000) for a little while, but has slashed the price of its 550MHz part to $490/1000. It has burnt the price of its 500MHz PIII to $255/1000, while, as reported here last month, the 450MHz Pentium III is effectively consigned to history, with a Celeron-like price of $187/1000. As reported here, the Pentium II family is now dead, with the highest specced item, the 450MHz, costing the same as the PIII/450. This pricing mechanism means that Intel has managed, in the space of only a few months, to shift its entire PII family to the PIII family. Again, as reported here, we will see Intel gradually move PIII type technology into its Celeron low-end family. (Story: Coppermine Celeron waiting in wings) The real question now is how long AMD can afford to keep its current pricing structure, or whether it can and will hold out against Intel's pricing action. In all of the marchitecture hype between Intel and AMD, the K6-III should not be forgotten. AMD wanted to pitch this part against the Pentium III, but it has not sold at all well, largely because of Intel's pricing actions throughout 1999. AMD maintains that its Athlon K7 should be compared not against the PIII family but against forthcoming Intel Will-its-release-date-be mette processors. ® See also Intel brings Pentium III launch forward (The infamous Tweedledee-Tweedledum story) Intel to send PIII/450 to gulag Pentium II family reaches end of the road Five more Intel parts to join PIII/450 in chip gulag Intel: 133MHz FSB plot to thicken sooner than thought K7 strategy is a tightrope walk AMD-Intel battle of the processors about to start Intel's PIII/600 for sale -- applies price fork to AMD K7 Do Athlon K7 figures add up for AMD?

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