Intel and AMD Quad-Core Rhetoric Heats Up

By Geoff Duncan July 21, 2006

Processor makers AMD and Intel are already engaging in a war of words over the not-yet-born quad-core processor market, each claiming in their quarterly financial statements that their quad-core products are on track for strong debuts. However, despite a substantial internal restructuring aimed at streamlining the company’s internal processes, Intel is expected to be out the door with its Kentsfield and Clovertown quad-core designs by the end of 2006, with AMD vowing to demonstrate its quad-core solutions in the same timeframe.

For its part, Intel announced disappointing quarterly earnings (down 57 percent from the same period last year) along with an internal shakeup designed to cut costs and streamline the company’s internal development and decision-making processes. The moves involve shuffling around high-level management so simplify the overall corporate structure, ahead of expected layoffs among Intel’s rank-and-file. Intel’s management isn’t giving any numbers, but analysts put overall pending layoff figures around ten percent of the company’s overall workforce, or about 10,000 employees. These cost-cutting moves are probably the only thing keeping investors from further eviscerating Intel’s stock price in the face of gloomy earnings outlooks for future quarters: Intel’s Core 2 Duo (aka Conroe and Merom) processors might tip the overall processor performance battle in Intel’s favor, but Intel’s battle with AMD is forcing the company to price the technology at painfully low levels

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