AMD wins major battle in Intel price war

Verdigrisgate: we will fight them on the silicon beaches

There will be no price reductions on existing Athlon processors when AMD introduces its 750MHz microprocessor next Monday, sources only a cigarette packet away from the company said today. That represents a major victory for AMD against Intel, and shows that the upstart chip firm is beginning to make the chip giant feel the pain. The sources said that AMD will introduce the 750MHz Athlon at around $795 or so, but will keep prices of other chips in the same family stable. One source said: "Given Intel's current position on 600MHz plus parts I don't think AMD need to reduce their prices just yet." As we reported last week, Intel will take steps on the 12th of December next to cut prices on its Coppermine .18 micron processors, despite the fact that supplies are still constrained. It is expected to make larger cuts than usual, in a counter attack on AMD, but will keep its powder dry on the older .25 micron parts until January next year. At the end of last year, we reported that AMD would stand firm against Intel's aggressive pricing strategy some time in 1999. It suffered grievous bodily harm from Intel's ability to reach deep into its pockets throughout most of last year and the first half of this year. Intel cannot afford to see high margins on its high end processors degraded for very long. The Coppermine debacle has turned into Verdigrisgate. ® Factoid Verdigris is now usually applied to compound Copper Carbonate, formed as a result of leaving Coppermine out in the rain for too long. See also Intel loses big industry face to AMD over Coppermines Big PC vendors furious over Intel Coppermine yields Intel will cut Coppermine prices earlier than expected

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