Advanced Micro Devices Inc. finally agreed to reduce the price of its 1-GHz Athlon microprocessors, introducing its 1.1-GHz Athlon in the process.

While AMD (stock: AMD) previously disclosed that the new 1.1-GHz Athlon will be available on Aug. 28, the company didn't disclose its price. However, both of AMD's new chips are available at substantial discounts to comparable Pentium III processors from Intel Corp. (stock: INTC).

"The bottom line on the news today is that we are seeing outstanding frequency distribution on our processors, and we can manufacture high volumes of the higher-frequency processors," said a spokesman for AMD, Sunnyvale, Calif.

The 1.1-GHz Athlon will ship Aug. 28 at $853, in 1,000-unit lots, while the price of the 1-GHz chip was reduced, to $612. Previously, the 1-GHz Athlon was available for $990.

"What a difference a year makes," said W.J. Sanders III, chairman and CEO. "The AMD Athlon and AMD Duron processors are reshaping the landscape of the PC industry."

Intel has priced both the 1.13-GHz and the 1-GHz version of its Pentium III at $990, in limited production quantities, an anomaly that will be rectified with Intel's next pricing revision, said a spokesman for Intel, Santa Clara, Calif. Intel's next pricing revision is expected soon, probably within the next few weeks.

AMD also made several other pricing alterations, lowering the price of its 950-MHz and 900-MHz chips to $460 and $350, respectively. The 850-MHz and 800-MHz Athlons were reduced, to $282 and $215, respectively, each in 1,000-unit quantities.

AMD also lowered the prices of its low-cost Duron chip. The 700-MHz, 650-MHz, and 600-MHz AMD Duron processors are now priced at $138, $103, and $79 respectively, each in 1,000-unit quantities.

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