AMD hikes single-way server chip prices

Posted on 3 Aug 2005 at 17:27

One day after announcing price cuts across its range - AMD has gone into reverse and increased the price for its single-way Opteron server processors.

As a strategic piece of news management, the new dual core two-way and eight-way Opterons (series 200 and 800) were introduced yesterday amid falling desktop and laptop processors. AMD, however, was holding back increases for its 100 Series Opterons.

In the latest prices - published yesterday - the 152 increases by 92 per cent (from $417 to $799), the 150 by 32 per cent (from $278 to $367), the 148 by 21 per cent (from $218 to $263) and the 146 by just two per cent (from $178 to $183).

In contrast, the Model 144 Opteron is cut by 23 per cent (down from $163 to $125).

Note that these prices are based on 1,000 unit direct orders.

AMD also waited a day to eliminate the Model 142 Opteron from its schedules.

AMD's justification for the Opteron 100 rise is the inclusion of faster memory - AMD adds ECC unbuffered memory support for Opterons.

The price hikes do sit uncomfortably, however, with the announcement of the desktop-style EEC (error-correcting code) memory: 'Adding ECC unbuffered memory support to AMD's award-winning AMD Opteron 100 Series processors with Direct Connect Architecture,' said Marty Seyer, corporate VP of AMD's Microprocessor Solutions Sector, 'is going to enable our customers to offer even more compelling 1P server and workstation solutions, while helping to reduce their overall solution costs.'

That's a lot of savings promised for memory faster by one cycle than the alternative Registered memory...

It is not the first time that AMD has increased its processor pricing and - given that any commercial company will largely charge what the market can stand - reflects AMD strengthening position in the marketplace. The days of smply being a cheap Intel clone have long gone.

Author: Alun Williams