Intel has substantially reduced prices on some of its dual- and quad-core processors — in some cases as much as 50 percent. However, industry observers note that most of the discounted products were fabricated using 65-nanometer technology.
The price cuts make sense as the world’s leading chipmaker moves to 45 nanometers, noted iSuppli principal analyst Matthew Wilkins. “This is precisely the sort of expected price cut that goes hand-in-hand with Intel’s transition over to the new process technology,” Wilkins said. “They are transitioning those products down through their price schedule. And if you look at the same time last year, Intel refreshed its price list on almost exactly the same day.”
Price List Refresh
According to CEO Paul Otellini, Intel saw particularly strong demand for its 45nm products in the first quarter. “And we continue to ramp that process rapidly — both in terms of volumes as well as in the breadth of product offerings,” Otellini told investors earlier this month.
Virtually all the products that Intel produced during the first quarter were 45nm processors. “At this point in time, we’ve shipped in excess of 8 million units, so we are moving very quickly up the ramp curve,” Otellini explained.
One tangible benefit of the 45nm technology, according to Intel executives, is that chips cost less to produce. Another is that 45nm enables Intel to combine outstanding performance with low power consumption. “We expect our differentiation to grow as we aggressively ramp this new technology,” Otellini said.
Tougher for AMD
Intel’s price drops will make the microprocessor sales environment “just a bit tougher” for rival Advanced Micro Devices, Wilkins observed. “There’s a quad-core chip that Intel has cut by 50 percent, which is a pretty aggressive move,” Wilkins said. “And it comes at a time when AMD has come out with…