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AMD to cut Athlon price in October?

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Reports that AMD is set to cut prices on the 4th of October next were neither confirmed nor denied by the firm today. Yesterday, we reliably reported that AMD has already started shipping volumes of a 700MHz Athlon. When it does ship this part, in the near future, price adjustments are inevitable. According to information which a dealer claimed he received from a European AMD distributor, prices of Athlon K7s will fall as the company readies its faster 700MHz Athlon. The information, which we were unable to verify at press time, is that the Athlon 500MHz will fall to $220 ($258), the 550MHz to $320 ($465), the 600MHz to $490 ($637) and the 650MHz part to $880. We have no information, so far, about the price of the 700MHz. (Prices are approximate -- after conversion from a European currency. The prices in brackets are the approximate current prices). Robert Stead, European marketing director at AMD, said: "We don't pre-announce price changes publicly, but I will ensure that you are informed as soon as any changes are made." If the reports are true, the reductions will mean a further headache for Intel, which has spent the last three months adjusting its prices in a bid to compete, aggressively, with its much smaller competitor. Further, and again depending on whether the information is correct, the price cuts mean that AMD is not responding blindly to Intel's moves. A price of $320 for an Athlon K7 550 demonstrates it is deliberately targeting the chip giant. We will attempt to get further information during the day. ®

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