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AMD and Intel said to be engaging in desktop CPU price war
Monica Chen, Taipei; Steve Shen, DIGITIMES [Wednesday 11 December 2013]

AMD has implemented comprehensive price cuts for its desktop processors, including FM2 socket A4 5300/4000 CPUs, sold in China and North America to counter Intel's 15% reduction in some Pentium and Celeron models since September, according to industry sources.

Intel confirmed a price cut by stating its policy is to adjust its product prices at different points of time in accordance with planned roadmaps. AMD declined to comment when asked if it has cut prices, saying it does not comment on media reports.

The sources say that the price cuts, which range up to 30% for some models, are being implemented to usher in AMD's next-generation Kaveri APUs slated for release in January 2014. The Kaveri APUs, which are manufactured on a 28nm process and target performance and mainstream players, will come with 2-4 CPU cores built on a heterogeneous systems architecture (HSA) and are expected to take on Intel's forthcoming Haswell Refresh CPUs, said the sources.

Thanks to the price reductions, purchases of CPUs in channels have picked up, and AMD has also seen its market share in China ramp up, said the sources, adding that Intel may respond by cutting its CPU prices even further.

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