News / Hardware
Processor price cuts marked an intense 2006 PC market contest
In July 2006, Intel reduced prices on selected desktop processors as competition with AMD intensified and a new generation of PC chips was arriving.
Competition reached the price list
The report described reductions on several Pentium D and Pentium 4 models, with AMD having lowered prices on some desktop and laptop processors earlier that week. Because processors were a major part of a PC bill of materials, the expectation was that lower component prices could influence system prices later.
A product-transition moment
Intel also introduced the Core 2 Duo line, while older products were being repriced. This was a snapshot of a particular product cycle, not a recommendation or present-day price comparison. The durable lesson is that list-price changes need context: product generations, availability and finished-system pricing do not move in lockstep.