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AMD takes axe to Athlon prices

It's a Jack in the Beanstalk situation

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Updated As predicted here, AMD will slash the prices of its Athlon microprocessor on 24 April, further applying pressure on Intel's margins. The cuts are a prelude to AMD's introduction of its Spitfire and Thunderbird microprocessors, now expected in June. Prices to PC manufacturers will be as follows. The 650MHz Athlon will cost $170, the 700MHz $197, the 750MHz $250, the 800MHz $330, the 850MHz $430 and the 900MHz $595. These prices are for quantities of 1000. We also now have details of distributor dealing pricing. The 600MHz Athlon will be $162, the 700 $190, the 750 $244, the 800 $324, the 850MHz Athlon $433, the 900MHz $595, and the $950, and the 1000MHz, $1044. For boxed versions with three year guarantees, add another $15 or so, more for the higher specced parts because of more expensive heatsinks. Our information is now that that 600 is at the end of its life, which is why it and 650 are the same price. Further, although Thunderbird is now ready, AMD will delay the Spitfire to coincide with the release of Thunderbird, with the date, now, probably June. This is a chicken and egg situation, as far as we can judge, with AMD now trying to synchronise the launches of both. The pricing of AMD's 700MHz Athlon is particularly interesting, because the firm is positioning it against Intel Celeron microprocessors. These Intel processors are, effectively, cut-down versions of Coppermine chips. But, as we noted several days back, Intel has shortages of Coppermine processors, with many of its customers being told that availability will be patchy, at best, until June or July. It now seems that the giant at the top of the beanstalk is in danger of Jack stealing the goose that lays the golden eggs. ®

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