PC Company cuts down on AMD chips

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%.

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.

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