AMD issues dramatic price cuts for triple-core CPUs

By Wolfgang Gruener

Sunnyvale (CA) – AMD’s triple-core Phenom X3 processor was designed as the firm’s answer to Intel’s 45 nm Core 2 Duo CPUs and as a buffer to protect the tray prices of its quad-core Phenom X4 models. However, since the launch in April, AMD has cut Phenom X3 prices nearly in half since their launch in March and has repositioned the chips to compete with Intel’s entry-level Core 2 Duos and dual-core Pentiums, which are mainly used for desktop PCs with prices of $500 and below. Bargain hunters could find the X3 increasingly appealing – there is a new chip targeted at overclockers and two new low-power models.

AMD’s recent product and market strategy leaves us scratching our heads. On one side, the company has a clear problem to keep average selling prices of its processors at high levels. On the other, it cuts the prices of what might have been the company’s arguably most important chips this year at unprecedented levels. The current pace of price cuts is unusual and makes us wonder whether AMD has enough 65 nm production efficiency to enable these price cuts or if the company has more channel and retail problems than we know of.

Today’s price for X3 processors cut is the second within two weeks. AMD now has four regular (95 watt) triple-core processors. The X3 8450 runs for $104 (down from $125 in July), the X3 8650 for $119 (down from $145), the X3 8750 for $129 (down from $175) as well as the new X3 8750 Black Edition with overclocking support, which is priced at $134. Pricegrabber.com average retail price data suggests that the lowest retail prices for AMD triple-core processors are within 5% of AMD’s tray prices.

Also new are 65 watt X3 8450e and 8250e processors with undisclosed prices.

A quick look at Intel’s price sheet reveals that AMD decided to price its X3 processors at the very low-end of Intel’s Core 2 Duo range. The 8450 is priced right between Intel’s budget 45 nm dual-core E5200 ($84) and the regular Core 2 Dup lineup, which begins at $113. AMD’s X2 dual-core CPUs are priced between $66 for the 5000+ version and $92 for the 6000+ model.

There is no doubt that AMD’s triple-cores are bargains in today’s PC market. According to Hot Hardware, a 2.4 GHz X3 8750 is outperformed by a Core 2 Duo E6850 3.0 GHz by just 6%. However, the X3 sells for $129, while the E6850 runs for $183, according to Intel’s latest processor price sheet.

If you are looking for a mainstream PC and have to stay within a certain budget, it might be a good idea to closely watch PCs with these processors.

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