Pentium 4 prices to be slashed across the board

Tom Krazit, IDG News Service   Today’s Top Stories   or  Other Hardware Stories  

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July 23, 2002 (IDG News Service) -- Intel Corp. will cut the prices of its Pentium 4 processors an average of 26% by Sept. 1, six weeks earlier than expected, according to a research note from Salomon Smith Barney Holdings Inc. (SSB) that was distributed yesterday.
The price of higher-end processors will be cut earlier to coincide with the launch of the 2.8-GHz Pentium 4 on Aug. 25, said Jonathan Joseph, an analyst at SSB, in the e-mail note.
The 2.8-GHz launch will occur earlier than expected, which might signal that Intel is concerned about demand for its chips in September, an important buying period for chip makers, Joseph said. The 2.8-GHz Pentium 4 had been scheduled to appear in the fourth quarter of this year.
The fastest chip now in the Pentium 4 lineup, the 2.53-GHz processor, will have its price reduced by 63%, while the low-end 1.8-GHz processor will get a 13% price cut, Joseph said.
Joseph attributed the cuts to Intel's desire to stimulate demand for its chips heading into the fourth-quarter holiday buying season, one of the most lucrative segments of the year for Intel and its rivals.
Also, published reports yesterday said Intel is bumping up the release of its 3-GHz Pentium 4 processor to PC manufacturers in time to include the chip in holiday season PC deals. The 3-GHz chip had been scheduled for release late in the fourth quarter of 2002 or early in the first quarter of 2003 but will now appear early in the fourth quarter, the reports said.

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