Hardware21.01.2009

CPU prices plummet

Rumours last week that Intel would cut its CPU prices appear to have borne fruit.

Tomshardware.com reports that on Sunday, Intel announced that it would trim prices on a good portion of their CPUs.

Unfortunately, their i7 range was not included in the price cut.

Of course AMD were not to be outdone, and cut their prices accordingly in order to remain competitive.

Some of the price-cuts include:

Core 2 Quad Q9650: was $530 – now $316
Core 2 Quad Q9550: was $316 – now $266
Core 2 Quad Q9400: was $266 – now $213
Core 2 Quad Q8300: was $224 – now $183
Core 2 Quad Q8200: was $193 – now $163
Core 2 Duo E7300: was $133 – now $113

In response, AMD has dropped the price on its Phenom II range.

AMD price cuts

Phenom II X4 940: was $275 – now $235
Phenom II X4 920: was $235 – now $195

Both CPU manufacturers are struggling through the current economic recession, so price cuts are hardly surprising.
 
The Q9650 is the most significantly reduced consumer-orientated CPU, having its price slashed by 40%. This monster CPU just became a lot more attractive to consumers looking for high-end performance on a budget.

At $266 Intel’s Core 2 Quad Q9550 also offers impressive performance at a very decent price point. This price cut alone left AMD with no choice but to drop the price of the Phenom II 940, as it would be out matched by the prospect of a cheaper Q9550.

The Phenom II 940 finds itself hovering $22 above its main competition, the Intel Q9400. The difference between these chips is relatively small, with a minor advantage going AMD’s way, arguably justifying the slightly higher price. The Phenom 920 at $195 is a very attractive purchase, making its closest competitor Intel’s Q8300 which it beats quite easily for just $12 extra.

While price cuts are always welcome, it is a touch disappointing that Intel decided to maintain the pricing structure of their top of the range i7. What is sadder still, is that AMD have nothing that can compete with i7, and have to settle for going head-to-head with Intel’s aging Core 2 Quad range in a price war.

However, those looking for a high performance CPU at a good price, things just opened up. It remains to be seen if, how or when these price cuts will filter down through the local distribution networks. We are currently awaiting comment from some local suppliers.

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