AMD doubles up on Intel price war

The chipmaker slashed the prices for its top of the line 3GHz chip to US$799, down from Us$999. Prices for the Athlon 64 X2 5600+ saw the largest price drop, falling from US$505 to US$241.

The price drop came on the same day that the chipmaker launched a corporate restructuring in which it aims to reduce annual expenses following a drop in revenues. In a statement the company blamed the move on the prolonged price war with rival chipmaker Intel.

After seeing its market share slip, Intel last summer drastically lowered its chip prices. This forced AMD to follow suit and has allowed Intel to take back some of the market share that is lost.

Both companies continue to invest heavily in new manufacturing plants for next generation 45nm chips.

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