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By | Tony Smith 23rd March 2007 11:27

AMD to axe prices in April?

Market watcher forecasts cuts

AMD will cut the prices of entry-level 90nm processors on 9 April by between 30 and 35 per cent, a US investment bank has claimed.

San Francisco-based Thomas Weisel Partners (TWP) recently told investors AMD's inventory levels of these chips remains high, suggesting to TWP analysts a further round of price cuts is in the offing, DigiTimes reports.

AMD has implemented three rounds of price cuts this year already, trimming Athlon and Sempron prices in January, followed by Opteron and further Athlon cuts in February. The cuts have come as arch-rival Intel has aggressive pruned its own prices, part of a fight that's harmed both companies' bottom lines.

In January, AMD reported its first quarterly loss in two years. Its announcement came a week after Intel reported a 39 per cent decline in profitability.

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