AMD takes pricing action

In two week's time, on Monday 9th August, prices will increase for AMD Athlon XP 2800+ up to 3200+, we have reason to believe. Like Intel, AMD has a highly developed channel. Distributor prices, retail prices and prices for people that make machines all differ.

At first glance, this just appears to be preparing the ground for the seeds of Sempr0n flowers to be planted on Tuesday 17th August. On second thoughts, we are inclined to see a little bit more behind these moves.

First, we've been used to seeing the market leader's action first and the runner-up's move the next day, matching the big dog's price points. And second, we are not so used to price increases in this industry - let alone from AMD.

In his general statement at a Conference Call ten days ago, AMDs CEO Hector Ruiz pointed out his company has “positioned itself to be in more control of our own destiny”. Being able to actively adjust pricing to its own manufacturing and inventory situation instead of being forced to react to the competitors price-moves strongly supports his argument.

Under this premise, directions of price adjustments of Athlon64 and AthlonXP products carry the message that Hector is currently “turning the knob” of its Fab30, reducing wafer starts of its K7-line of processors in favour of more K8-starts to accelerate the migration in the markets to AMD64-technology. µ

* INTEL'S NEXT big pricing push was still slated for the 22nd of August when we checked during the course of this last week. Ed.