Chicago (IL) - Courtesy of tgstores and PriceGrabber.com we bring you a new weekly analysis that examines availability and pricing trends of specific product segments in the etail market. In this first edition, we take a closer look at dual-core processors from AMD and Intel : The Athlon X2 and Pentium D are just three months into their life cycle, but pricing of some variants already has dropped up to 35 percent below their introduction level.

Remember AMD’s and Intel’s pricing strategies of their dual-core processors Athlon 64 X2 and Pentium D ? The scenario was very different from traditional processor announcements. While AMD usually had to discount Pentium equivalents to convince system builders and customers to buy their chips, this time around AMD took a bold step and announced a 1,000-unit pricing that - with chip prices reaching $1001 - was clearly aimed at the high-end market. It happened just recently that X2’s are heading also for the mass market : The X2 3800+ is AMD’s first true mainstream dual-core chip.

Intel, on the other side, cjose the budget route with its Pentium D. The company did not charge significant premiums over single-core solutions and ended up offering a massmarket solution from the start.

So, are the market strategies still holding up three months after launch ? A look into statistics of PriceGrabber.com and its registered etailers provides an overview of the current etail market environment.

Overall, X2 und Pentium D processors already have suffered substantial declines in their retail pricing, apparently due to supply that is outstripping demand. However, AMD has been able to maintain a substantially higher price level for the X2 than Intel for the Pentium D. While the X2 chips fell an average of 11.08 percent since their introduction on May 31 of this year, Intel’s Pentium Ds lost twice as much : 22.7 percent since May 26.

The price drop makes dual-cores significantly more attractive for consumers. In AMD’s product line, the X2 4800+ has fallen from its initial etail pricing 16.8 percent from $1090 to currently $905. The 4600+ dropped 10.1 percent from $860 to $724, the 4400+ 10.6 percent from $622 to $556 and the 4200+ 13.3 percent from $565 to $490. The recently introduced 3800+ entered etail at $401 and now averages at $385.

Intel’s Pentium D experienced dramatic declines especially at the low-end. At $232, the Pentium D 820 has reached bargain basement. The price is 34.6 percent lower than at the chip’s introduction ($355). A similar dip happened to the 830 model, which currently averages at $320 - 28.9 percent lower than at etail launch ($450). The top-of-the-line 840 sees more stable pricing with a downturn that is in line with AMD’s X2. The processor dropped 13.3 percent from $635 to $547.

The gaming processor landscape is another story : Both companies maintain tight supply and extremely high price levels for their fastest chips. AMD’s (single core) FX-57, according to list pricing, the most expensive processor at this time is available for an average of $1039 in online stores - this is slightly above official 1000-unit pricing ($1031) and about 10 percent below the level when the processor hit the market at $1155. Intel’s dual-core Pentium EE 840 sells in the same price range, currently for $1040. At introduction, the processor fetched $1215.

There is never a best time to buy a processor or a complete computer. While prices of existing chips tend to consistently drop over their lifespan, performance of the products tends to get outdated at a rapid pace as well. The pricing data of PriceGrabber.com confirms this scenario - especially the Pentium D 820 (2.8 GHz) and 830 (3 GHz) will play a role of entry-level processors from now on until the Conroe chip is introduced in the second half of next year. Expect sub-$900 systems to carry these CPUs in the near future. Etail pricing for the 820 and 830 is likely to drop over the next 12 months - but not much. This makes these two products an attractive choice for users who are interested in dual-core computing without putting a huge dent into their budget.

AMD’s X2 chips remain pricey processors at this time. While AMD is offering an edge in speed, the CPUs continue to appeal mainly to users who choose performance over price.

All data provided by PriceGrabber.com Market Reporter