Intel Corp., the world’s largest chipmaker, plans to slash the price of some processors over the next three months to regain market share from Advanced Micro Devices Inc.
The company will cut prices of its Core 2 Quad processor by 50 percent on July 22, according to an Intel document given to clients. The chips, introduced in November to run servers and the most expensive personal computers, sell for $530 each, according to Santa Clara, Calif.-based Intel’s website.
The move puts pressure on Advanced Micro to follow suit as the company prepares to introduce its own quad-core processors, called Barcelona and Phenom, in the second half. Last year, a price war led to a 42 percent decline in annual profit at Intel and a $166 million loss at Advanced Micro.
“Intel had lost its way,” said Brian Piccioni, a Toronto- based analyst for BMO Capital Markets. “But there is a problem when you wake up a giant, which is they can become fierce competitors.”
Chuck Mulloy, an Intel spokesman, declined to confirm or deny the price cuts, citing company policy not to discuss product prices until they are publicly disclosed.
