Intel's CPU sales fall, along with prices

By Justin Mann on June 6, 2006, 1:03 PM
The numbers aren't looking good for Intel's processor sales right now, with figures showing a volumes falling 21% and prices falling 40% over the past year. In the midst of a pricing war with AMD (although you can't always tell by looking at the cost of some CPUs), some are predicting that Intel will post a “profit warning”, as a result of both the lower costs of CPUs in the market and the lower sales, which dipped to as low as 52% of how much was sold last year in Q2.

Intel wasn't the only one affected, and AMD also took a hit in PC sales, but analysts are thinking AMD will hold steady rather than declining. Of course for Intel, they have the financial backing to engage in a price war and sell their CPUs below cost for quite a while. Interestingly enough, the decline in sales of CPUs in April was seen worldwide – except in Japan, which saw a rise in sales.




User Comments: 5

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crossfire851 said:
If they lower the price of conore more, this will be awsome.
DragonMaster said:
It they lower the price, they lose money, but once they rise them again, people will re-start not to buy them.
K9-Cop said:
I thought conroe pricing was already pretty low. It was the cost of a new motherboard that would be the problem.
abc said:
I agree K9, Conroe's pricing is very attractive. These price cuts are for current CPUs to continue moving them out the door with conroe just around the corner.
canadian said:
I could handle a few years of cheap Intel parts. They just need to wait until the right time to raise them again. Like, when they develope a new core, its a stealthy way to change the prices.
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