Intel will most likely report rather poor earnings for 2006 and that is mainly because of the price war that has been started against the archrival AMD. It is the analyst Bruce Diesen from Handelsbanken Capital Markets which predicts that Intel will most likely send out a warning flag soon since the demand for PC processors have been very poor during April, while at the same time the prices have dropped with 40% compared to the same period last year. Intel has simply stopped trying to make money on its current processor generation and just seems to wat to get rid of the stock as fast as posible before the Core architecture arrives. Intel’s heavy price cuts have been painfully obvious and in April the average price for a processor was about half of the price the month before.
As consumers we can only hope that Intel’s tactics will result in cheaper processors and computers, but when the Core architecture has been established times will most likely change.
“Intel has obviously given up on making any money on their current generation of processors and has started a price war with AMD,” concluded Diesen.
