Intel’s Troubling Price Cuts

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By Douglas A. McIntyre Published
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By William Trent, CFA of Stock Market Beat

We have written many times on both the general oversupply condition building in the semiconductor industry and in particular the battle between Intel (INTC) and AMD in the PC processor space. That latter topic resurfaced as a concern when we saw that Intel unexpectedly cut prices on its quad-core processors:

With the big Thanksgiving weekend in full swing, we are taking one more snapshot of processor etail pricing before the holiday shopping season officially enters the feverish final month. The chart kept some flexibility this week with the most significant changes happening on the very high end: The average price of Intel’s QX6700 CPU dropped $99 from last week.

Since AMD has no direct competitor to Intel’s quad-core design, it is somewhat troubling that Intel would be lowering the price so early.  It is one thing to have aggressive price cuts in older designs in order to clear out inventory. It is quite another thing to discount the latest and, presumably, greatest products.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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