Intel's planned price cuts for its Pentium 4 range has persuaded IBM to cut back on the number of chips it uses from rival AMD.
Big Blue has dropped AMD chips from PCs sold in the US altogether, and will cut marketing spend on its AMD-powered PCs in Europe.
Never one of AMD's strongest supporters, IBM began to offer Athlon- and Duron-based PCs in the US only last September. The firm canned the line in May, although it has continued to sell off remaining stock through its websites.
However, Big Blue said it will continue to market and sell its AMD-powered range in Asia, following reports that there is less brand preference for chips in that market.
AMD and Intel are locked into a price war as demand slumps. Intel wants to win back market share lost to AMD since the launch of its Athlon processors. It is expected to unveil a new 2Ghz Pentium 4 chip on 26 August, and reveal massive price cuts of 40 to 55 per cent for the remainder of the range.
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