Intel cuts prices by up to 18%

Chip giant Intel has cut prices on some of its Pentium 4 and Celeron desktop processors as well as on two Xeon server and...

Chip giant Intel has cut prices on some of its Pentium 4 and Celeron desktop processors as well as on two Xeon server and workstation processors and two Pentium III server processors.

The biggest cut was made on the 1.6GHz Pentium 4, with an 18% reduction from $163 (£116) to $133 (£94). Other reduced-price Pentium 4 processors are the 1.9GHz, from $273 to $241, the 1.8GHz, from $225 to $193, and the 1.7GHz, from $193 to $163.

All prices are wholesale, when bought in 1,000-unit quantities. The price cuts are unlikely to have an immediate effect on street prices because of existing channel inventories.

While Intel did not touch the prices of its latest Pentium 4 models, which run at or above 2GHz, it did cut the prices on its four top Celeron processors, targeted at budget-consumers. The 1.3GHz Celeron was reduced from $118 to $103, the 1.2GHz from $103 to $89, the 1.1GHz from $89 to $79, and the 1GHz from $74 to $69.

In the servers and workstations area Intel reduced prices on two Xeon processors by 13% and two of the Pentium III server processors by 16%.

The 2GHz Xeon with 256K bytes of cache now costs $396, down from $455, and the 1.70GHz Xeon with 256K bytes cache is listed at $224, down from $256. The Pentium III 1.26GHz is now priced at $202, previously $241, and the 1.13GHz version is now sold for $170, down from $202.

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