Intel Corp. introducing three models the Pentium D at a price that’s less than half of AMD’s own dual-core chip on Thursday, May 24, 2005.

The three chips are priced in lots of 1,000 units as the followings:-

• 2.8-GHz Pentium D 820 - USD$241
• 3.0-GHz Pentium D 830 - USD$316
• 3.2-GHz Pentium D 840 - USD$530

Intel also introduced the Pentium 4 670, a 3.8-GHz 64-bit chip that will round out the top end of its single-core platform, at USD$851.

As compared to the AMD Athlon X2, Intel’s new Pentium D offers a dramatic discount. AMD’s slowest 2.2-GHz 4200+ Athlon X2 is priced at USD$537, while the slowest Intel Pentium D, the 2.8-GHz 820, is priced at USD$241. This is less than half the Athlon X2 price.

Below is the explanation from AMD spokewoman, Cathy Abbinanti.

Quoted:
“Our desktop dual-core AMD Athlon 64 X2 products are priced based on performance,” said Cathy Abbinanti, an AMD spokeswoman, when asked for comment on the pricing discrepancy. “Based on the performance benchmark information in recent third-party reviews of the competition’s dual-core desktop product, we believe our lowest performing AMD Athlon 64 X2 dual-core processor will outperform Intel’s highest performing dual-core part.”

The explanation was supported according to ExtremeTech tests.

Now, the situation in Dual Core market seems to have changed the position of both chip producers as analyst Loyd Case wrote in his review - AMD goes for premium Dual Core chips while Intel target some affordable market.

Quoted:
“So while Intel is losing in the performance game, it may very well win in the perceived value side of the equation”. “We’re likely to see a host of relatively low-cost dual-core systems shipping in the near future. We’ll have to see what AMD’s response will be.”

[Source]