Chip maker AMD's biggest New Zealand customer, The PC Company, is cutting back on AMD chips. This follows rival chip maker Intel's move to cut the price of the Pentium 4 by 40%.
PC Company managing director Colin Brown says the price cut means the local manufacturer will be able to offer P4 computers in the pricing "sweet spot" of $2999.
The price cut will take effect on Monday and The PC Company expects to have P4-based PCs available at the new price immediately.
Currently the PC Company's ratio of AMD to Intel chips is roughly 75:25 but it will be more like 50:50, says Brown.
Meanwhile, IBM has quietly dropped microprocessors made by AMD from the PCs it sells in North America, dealing AMD a blow as it faces the possibility of an expanded price war with Intel.