Intel VARs left waiting for uniformed pricing
Chip vendor hopes to regain lost market share from rival AMD with latest price cuts
Intel’s channel are optimistic about the chip giant’s recent price cuts, but hopes are fading for the introduction of a uniformed pricing structure (CRN, 31 July).
Last week Intel slashed prices on some of its chipsets by up to 60 per cent, compared with its 2004 prices.
The reductions cover a wide variety of its chipsets, such as the Pentium D, and comes just two weeks after the unveiling of its Core 2 Duo chip.
The vendor has refused to comment openly on a price structure.
A source that wished to remain anonymous told CRN: “A drop in prices should hopefully stimulate demand in the channel.
“These price drops are Intel’s attempt to regain lost market share from AMD. A big chunk of its market has disappeared and the sleeping giant is now beginning to wake up.”
Les Billing, managing director of Intel distributor Microtronica, told CRN that the price drop will give local system builders a more competitive offering over the likes of Dell, especially in the services arena.
“I’m sure this is a move to combat AMD,” he said. “Customers are shipping a lot more kit than they used to, so I’m highly motivated about this [price reduction] for the channel.”
However, Gordon Davies, chief executive of Compusys Consulting, told CRN: “This is mainly about regaining AMD market share. Its price harmonisation is probably only fantasy now.”