AMD (AMD) hope to this day that its new Barcelona quad-core chip will get it back in the game of taking server chip market share from Intel (INTC). The four cores allow the chip to process substantially more information that single or dual-core chips.
But, the first version of Barcelona, out next month, will be less powerful than analysts had hoped.
To make matters worse, Intel has made it to market with its own quad-cores, and today said it would put out a cheap, low-powered version of the architecture and one that very speedy and more expensive.
The Intel chips will carry low price points, which will help further squeeze AMD’s already shrinking margins.
Perhaps AMD should simply give its chips away. It can’t lose much more money than it already does.
Douglas A. McIntyre