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AMD resists Intel price cut pressure

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AMD has denied claims that it will cut prices on its Athlon chip to match rival Intel's moves earlier this week. AMD said that rumours of price drops were untrue, and it would stand firm with its current prices. Rana Mainee, AMD's European research director, said Intel was following AMD's lead, and not vice versa. "We changed our prices two weeks ago, and Intel reacted to this action," he said. "We evaluate prices regularly, but I can confirm that there are no plans at the moment to make any pricing changes." Distributors Microtronica and Flashpoint both said were unaware of any planned Athlon price cuts. Mainee defended the decision, saying the speed of the Athlon chip made Intel's price cuts irrelevant. Last week, Intel said it would keep its 0.25 micron PIII at the same price of $700/1000, but cut its 550MHz PIII to $490/1000 and its 500MHz PIII to $255/1000. AMD seems to be sticking to its guns over last year's forecasts that it would resist downward pressure on prices. In December, Mainee told The Register that 1999 would see the situation come to a head: "We're not in a position today to resist [Intel's] market pressure. But sometime during 1999, we won't feel compelled to drop our prices when Intel does." ®

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