Intel customers have been informed that the company is prepared to cut prices on its Pentium processor range by up to 60 per cent in order to reclaim lost market share from AMD.
According to Micro-Star and Gigabyte, two of Intel's biggest Taiwan partners, the chip maker is planning on announcing the price cuts on July 23rd. The Intel reaction comes as AMD increased its share of the processor market last quarter by 20 per cent for the first time in four years.
According to the Taiwanese companies Intel plans to cut its high-end dual core chip prices by 15 per cent while prices of the Pentium range will see price cuts of 60-61 per cent. AMD also plans to introduce its own price cuts but according to Gigabyte they will not be as impressive as Intel's.
The success of AMD's Dell deal and its aggressive marketing strategies have stirred Intel and analysts attending the Computex show claim a large scale price war is about to begin. Intel has refused to officially confirm the price cuts but the fact that this news comes from Computex suggests that it is reliable.
