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AMD's Sanders denies chip price war

And sets record straight on Dell

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Jerry Sanders today said AMD did not expect a chip price war, despite recent cuts from itself and rival.

The AMD CEO said his company's systems were still cheaper than those of chief rival Intel, which recently chopped prices on Pentium 4s.

He added that costs for RDRAM, used by the Pentium 4 chip, were higher than for DDR, used by AMD's Athlons, CRN reports. "We're not looking for a price war," Sanders told attendees of Merrill Lynch's Computer Hardware conference in New York.

"We don't expect a price war."

Sanders said he thought the PC sector was starting to recover, saying that he felt much better about the current quarter than he had two weeks ago.

But the chip chief does not expect flash memory sales to pick up this quarter. He expects them to remain flat, at best hitting around $10 million.

When asked about any future partnership between AMD and Dell, Sanders was even less optimistic, saying: "Our prospects of ever doing business with Dell are dim," according to BridgeNews.

Sanders, who is due to step down as CEO next April, added that he was happy with analysts' expectations for AMD's second quarter results. The company is tipped to earn between 20 cents and 32 cents per share in Q2. ®

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BridgeNews article
CRN article

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