AMD Plans Deep K6-2 Cuts

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September 24, 1998 (12:00 AM EDT)

By Mark Harrington,

Advanced Micro Devices on Oct. 26 plans a series of price cuts as it prepares for the introduction of 380-MHz and 400-MHz versions of its K6-2 3-D chips in the fourth quarter.

A market source said the price cuts, scheduled to come a day after Intel cuts prices, will land its entry-level K6-2 3-D 300-MHz microprocessor at $75 in 10,000-unit quantities, making the chip a prime candidate for sub-$600 systems due out in the fourth quarter.

Among other processors, AMD's K6-2 3-D 333-MHz chip will drop to $95, the 350-MHz will drop to $130; the new 380-MHz will be introduced at $170; and the 400-MHz chip will be introduced at $248, a source said. The 380-MHz is expected to require a special mother board sporting a 95-MHz bus speed, the source said.

At present, the 300-MHz chip sells for $129, the 333-MHz chip sells for $169, and the 350-MHz chip sells for $224, according to AMD. A spokesman declined to comment on future pricing.

In the first quarter of next year, AMD (company profile) is expected to further reduce the line. While the 300-MHz K62 3-D is expected to be discontinued, the 333-MHz chip will be cut to $80; the 350-MHz chip will be cut to $106; the 380-MHz chip will be cut to $135; and the 400-MHz will be cut to $185, the source said.

According to a price sheet shown to Computer Retail Week this summer, Intel's Pentium II 400-MHz chip, on Oct. 25, will be cut to $368; its P II 350-MHz chip will drop to $209; the PII 333-MHz chip drops to $209; and the PII 300-MHz chip drops to $205.

Celeron chips are expected to drop to $177 for a 333-MHz version with cache; to $135 for a 300-MHz chip with cache; to $104 for a Celeron 300-MHz without cache; and to $84 for a 266-MHz chip without cache.