AMD warning as rivals slash price

AMD warning as rivals slash price
Tom Foremski Advanced Micro Devices (AMD) has warned of an operating loss in the current quarter. The warning follows fierce price cuts from rival Intel which has brought forward price cuts and has reduced its low-end Celeron processors by up to 40 per cent. AMD says that while its faster K6-2 processors and increased production volumes are on the way, the benefits will not be realised until later this year. “In the light of Intel’s recent pull-in of its February 28 price reductions to February 8, and pending product announcements, we are re-assessing our competitive response,” said AMD CEO Jerry Sanders. He does not expect the company to be able to increase its microprocessor average selling prices in the current quarter. US market research firm International Data Corporation (IDC) says that AMD’s market share rose to 15.4 per cent in the fourth quarter of 1998 compared with 6.6 per cent of the market for the same period in 1997.


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