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Intel cuts processor prices

Intel has cut the prices of some of its microprocessors, including that of its most expensive desktop Pentium 4 processor.

Intel has cut the prices of some of its microprocessors, including that of its most expensive desktop Pentium 4 processor.

The 3.06GHz version of Intel's Pentium 4 chip with a 533MHz front-side bus was reduced from $589 (£374) to $401 (£254).

The reduction makes the chip a little cheaper than Intel's latest Pentium 4 chip which was lauched last week becomes the most expensive desktop chip. The chip has a clock speed of 3GHz and a faster 800MHz front-side bus.

The front side-bus connects the processor to the chipset. The speed jump from 533MHz to 800MHz provides users with increased performance, particularly when running demanding applications, according to tests by PC World.

The price cuts also included reductions in Intel's Pentium 4M and Mobile Celeron range of notebook processors. The cuts follow the launch in early March of Intel's first processor designed specifically for notebook use, the Pentium M.

Prices of Pentium 4 M chips were cut by up to 38%, with the largest cut being for the 2.4GHz version of the chip which was reduced to $348 (£221). Mobile Celeron processor prices were cut by up to 16%.

Intel also cut the price of its fastest Xeon processor. The 3.06GHz version of the chip was reduced by 4% to $690 (£438).

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