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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.

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5 comments

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  1. June 6, 2006 1:05 PM
    crossfire851 said:
    If they lower the price of conore more, this will be awsome.
    Reply
  2. June 6, 2006 2:33 PM
    DragonMaster said:
    It they lower the price, they lose money, but once they rise them again, people will re-start not to buy them.
    Reply
  3. June 6, 2006 4:19 PM
    K9-Cop said:
    I thought conroe pricing was already pretty low. It was the cost of a new motherboard that would be the problem.
    Reply
  4. June 6, 2006 4:52 PM
    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.
    Reply
  5. June 6, 2006 5:58 PM
    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.
    Reply

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