Intel has slashed prices across its Pentium 4 and Itanium product lines as it prepares for its biannual developer conference in San Francisco at the beginning of September.
Intel usually cuts prices in the weeks before the introduction of a new product in order to make room at the top of its pricing structure for the new products.
The company's chips are generally priced according to a sliding schedule, with new product introductions bumping older chips down a pricing scale.
The fastest Pentium 4 processor currently available, the Pentium 4 560 processor, has had its price cut by 34.5% and now costs $417 (£232) in quantities of 1,000 units.
Other Pentium 4 processors based on Intel's new LGA775 (land grid array) packaging were also cut by anywhere from 33% to 18%, and Pentium 4 chips based on the company's older packaging technology saw similar price cuts.
Celeron D and Celeron prices droped from 12% to 6.7%. The Celeron brand name is used for cut-down versions of the Pentium 4 chip that feature about half the cache of their more powerful cousins. The Celeron D brand represents the 90-nanometer version, and the most expensive Celeron D chip, the Celeron D 335, now costs $103 down from $117.
The most powerful chip in Mobile Intel Pentium 4 processor, lineup, the Mobile Intel Pentium 4 538 processor, also had its price cut and now costs $234, down from $294.
The company also cut prices on several Itanium 2 processors. The most expensive Itanium 2 processors were left alone but the 1.4GHz processor with 4Mbytes of Level 3 cache now costs $1,980, down from $2,247.
The 1.3GHz chip with 3Mbytes of Level 3 cache now costs $910, down from $1,338. Intel also cut prices on the 1.4GHz chip with 3M bytes of Level 3 cache, the 1.4GHz chip with 1.5Mbytes of Level 3 cache, and the low-power 1GHz chip with 1.5Mbytes of Level 3 cache.
The Intel Developer Forum has traditionally been used by the company to introduce new products or to provide updates to its product strategy. This year's conference will be closely watched as Intel has yet to provide specific details about the next generation of its Pentium 4 and Xeon processors since it ripped up its road maps in May and canceled two future products.
The company has spoken about its plans to move to dual-core designs for desktop, server and notebook processors in 2005, but it has not said what type of architecture those chips will have.
Tom Krazit writes for IDG News Service