Intel plans 50% price cut for Core 2 Quad chips
In a document Intel has distributed to its customers, the Santa Clara, Calif.-based company announced plans to slash the price of its Core 2 Quad processors by 50 percent on July 22, according to a report published Tuesday from Bloomberg news. The chips, which were introduced in November, currently sell for around $530 each.
The move could be a pre-emptive strike against AMD's quad core offering, Phenom, due in the second half of 2007. AMD would have cause to feel trepidation if the reported price-cut turns into reality. Indeed, the company's margins have suffered significantly in recent months, due, in large part, to a pricing war it has been embroiled in with Intel while competing for market share.
Intel would not comment on the reported price cuts. "We don't comment on future price changes," a spokesman told Electronic News. "As you know, for decades now as we bring new technology to market, we move our older technology to lower price points. There is no change to that strategy."
The lack of confirmation of the price cuts did not stop Wall Street from acting on the rumors: Intel's share price shot up nearly 3 percent as the news hit, climbing to $22.50 in Tuesday afternoon trading, up from the day's opening price of $21.86. Intel's stock continued to perform well today as the news continued to spread, hitting $22.54 at around 11:00 a.m. eastern.