Price war between Intel and AMD

Intel has just triggered a price war with rival AMD when it releases the latest chip. This helps users benefit when they can buy PCs with lower prices, especially if there is no need for the latest and most powerful chips.

Intel has just completed a "revolution" when last week introduced the new generation of dual-core desktop and laptop chips expected by users. Along with this move, Intel decided to reduce the price of some old chips to "free up" the warehouse, as well as attract users who still consider its products to be the norm.

" The processor is like a banana. It can't last long because the longer it is, the less competitive it is. They (Intel) must improve their business situation in the near future. " Nathan Brookwood's comment, an analysis of Insight 64.

The price war has made PC processor prices drop by 50% or more, but have little impact on the server market, which is very stable and rarely cut.

In recent years, Intel and AMD often apply price reduction policies to promote and regain lost market share. However, this time it seems that Intel has been "stronger" by reducing the price of many older chips. Last week, Intel introduced the Conroe processor platform (for desktops) and Merom (for laptops) - based on the new Core architecture platform. This new platform will completely replace the old NetBurst architecture platform.

Intel also hopes a lot and the new Core 2 Duo processor, rated by analysts as superior to AMD products. Intel executive chairman Paul Otellini calls Conroe and Meron "the best products" that the company has designed and built.

The price war is likely to continue as Intel focuses on Core 2 Duo. Otellini predicts that Intel will sell 1 million sets of Core 2 Duo chips in the next two months. Currently most of Intel's factories have turned to new technology, so old products must somehow "go out" quickly. The price war seems to only affect older chips from Intel and AMD. The two companies will also have to choose between profit and market share when pricing new chips.

Last week, AMD announced the "strategy card" this year, which is a 4-core desktop chip line for gamers and high-performance systems. The product will combine two dual-core Athlon 64 FX chips on one motherboard for about $ 1,000, roughly the same price as a single Athlon 64 FX chip.

Both Intel and AMD plan to introduce four-core chips next year, and set new standards for computers. The good news for consumers is that they will witness an additional price war between the two companies in the near future.