Intel to slash Pentium 4 prices

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Intel to slash Pentium 4 prices

Intel will cut the prices of its Pentium 4 processors by an average of 26% by 1 September - six weeks earlier than expected - according to a research note from financial analyst Salomon Smith Barney.

The chipmaker has also confirmed the product roadmap has been altered for upcoming Pentium 4 chips.

The price of higher-end processors will be cut to coincide with the launch of the 2.8GHz Pentium 4 on 25 August, said Jonathan Joseph, an analyst at SSB. Intel refused to confirm the date but said that the chip would be released in the third quarter.

Intel's 3.0GHz Pentium 4 processor will also be released ahead of schedule, in time for PC manufacturers to include the chip in their fourth-quarter holiday season products.

The early 2.8GHz launch might signal that Intel is concerned about demand for its chips in September, an important buying period for chipmakers, Joseph said. The 2.8GHz Pentium 4 had been scheduled to appear towards the end of this year.

The price of the 2.53GHz processor, the fastest chip in the existing Pentium 4 line-up, will be reduced 63%, while the low-end 1.8GHz processor will be cut by 13%.

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