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AMD follows Intel, puts CPU prices up

Arnaudt   on 30 March 2003 - 16:44 · 16 comments & 1390 views

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Distributors tell the INQUIRER that AMD has now followed suit in jacking up prices of its CPU because weak demand in North America and dumping in Taiwan have taken their toll on prices.

While Intel started the astonishing trend at the beginning of last week, we now understand that AMD has followed the lead of Chipzilla, imposing unprecedented price rises rather than price drops on the channel.

AMD told its major distributors late last Friday that the prices of its CPUs would soar by as much as an astonishing $12 per microprocessor, with the price rises taking effect in the Americas first thing Monday.

But AMD said it hoped the price increases would only last for a week or so, although as the world+dog knows, once prices go up, it's only lack of supply that keeps them high, while lack of demand causes them to sag.

News source: The inq.


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(1 reply) #1 leebobs on 30 Mar 2003 - 17:17
Not the best of news if you are in the market for a new CPU.... All the prices will come down when the new processors are released though!!
#1.1 m0 on 30 Mar 2003 - 18:39
[neoquote=#1.0 by leebobs]Not the best of news if you are in the market for a new CPU.... All the prices will come down when the new processors are released though!![/neoquote] and when will this be? in uk? thx m0.
#2 Michael Lerner on 30 Mar 2003 - 17:27
Well it's about time AMD tries to save it's a** I mean how can they become profitable with low prices.
#3 DrOmango on 30 Mar 2003 - 17:32
i dont mind.. at least make it $ 1 lesser than intel and it will confuse people which to purchase
#4 Michael Lerner on 30 Mar 2003 - 17:34
lol
#5 Tobbe on 30 Mar 2003 - 17:58
hmmm... :disappoin
#6 Knight' on 30 Mar 2003 - 18:14
What? Higher prices? Well, I know i'm not going to buy any new CPUs then for a while.
#7 ambient on 30 Mar 2003 - 18:46
big deal prices always sway once they get to about even one will drop less than the other then they both will fall, then go back up again blahblah...
#8 xpablo on 30 Mar 2003 - 20:54
It will just make them lower the price even more later on, supply will be high. Note to Intel & AMD: Never underestimate the power of the consumer, after all you guys are not an oil company.
#9 TC17 on 30 Mar 2003 - 23:01
Prices will go back down once they realize people aren't buying their cpu's. (Intel or AMD). Although $12 isn't all that much.
(1 reply) #10 zivan56 on 31 Mar 2003 - 00:23
Intel's 3.06Ghz costs less than the XP 3000+, thats hilarious
#10.1 Galley_SimRacer on 31 Mar 2003 - 03:19
[neoquote=#10.0 by zivan56]Intel's 3.06Ghz costs less than the XP 3000+, thats hilarious [/neoquote] Well, the P4 does perform slower in many instances.
#11 Techie2000 on 31 Mar 2003 - 00:24
Doesn't a lack of demand usually mean a drop in CPU prices? Or is the law of supply and demand going in reverse?
(1 reply) #12 Michael Lerner on 31 Mar 2003 - 00:32
According to my business class: low demand = higher prices
#12.1 TC17 on 31 Mar 2003 - 05:31
[neoquote=#12.0 by Michael Lerner]According to my business class: low demand = higher prices[/neoquote] Low demand = lower prices because they can't sell them. High demand "sometimes" raises prices due to price gouging. High demand also usually means the price isn't to drop any time soon unless there is some severe competition.
#13 georgi55 on 31 Mar 2003 - 05:34
For those who slept through their economics classes [IMG]http://www.netmba.com/images/econ/micro/supply-demand/supplydemand.gif[/IMG] http://www.netmba.com/econ/micro/supply-demand/

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