Compared to the rumored price drops of the past week, the 7/24/2006 price list, AMD may have made last minute changes and applied a more conservative price reduction model. While the decrease is substantial across the board, the reductions may not be enough to enable AMD to claim an overall price-performance leadership. According to findings published by TG Daily last week and according to a price list we received from Israel today, especially the 4200+, 4600+ and FX-62 models do not achieve this goal. For example, the 4200+ model would have to be priced below $213, but is indicated to sell for $225. The gap widens with the 4600+ version (below $241 required, actual price $290) and may raise eyebrows with the FX-62, which now sells for $860, but would need a price tag below $425 to achieve a price-performance leadership position over Intel's Core 2 Duo processor.
While we have to wait for an official U.S. price list some AMD processors appear to represent a great value, especially the X2 3800+ and X2 5000+ models. It is obvious that AMD will face a dramatic drop in average processor pricing at least over the next two quarters and it remains to be seen, if the new price points will result in enough additional sales to make up for the reductions.
