Re: The inventory level may be higher than needed, but you must stop producing identical chips if you want to claim invenory reduction is taking place. Otherwise it cutrate pricing is not a inventory management move.
Repeat after me: "Intel is no longer manufacturing Celeron 310."
Re: That's not really fair, since the alternative is to lose even more market share as the industry continues to perceive AMD's industry leadership. Intel can't just shake the benchmark results in people's faces and expect immediate results; they need to offer a no-brainer value in both performance/watt, and also performance/$. Intel is cutting prices so that people who have turned to AMD over the past couple of years do not hesitate to turn back to Intel.
>> Therefore, the $37.99 Boxed Celeron is a planned, deliberate strategy to trade revenues, profits, falling stock price for unit market share.
The above from me was not a justification of the Celeron 310. It was a justification of the earlier price cuts that went across the dual core product line. It's a justification for bringing dual core to sub-$200 pricing, in order to ramp the technology to cover the performance segments by the end of the year. Intel has the capacity, and 80mm^2 Cedar Mill die are cheap and plentiful to make dual core Preslers out of. It's not a frantic move, but a very deliberate strategy to force AMD into trading capacity for greater dual core production. AMD's dual core parts are much larger die - between 180-230mm^2, and when these go to high volume, even the Fab36 ramp won't be enough for them.