Intel cuts prices by up to 18%

Intel Corp. cut prices this weekend 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 1.6-GHz Pentium 4, which was reduced 18%, from $163 to $133. Intel also cut the prices of several other Pentium 4 processors, including the 1.9-GHz chip, which went from $273 to $241; the 1.8-GHz, reduced from $225 to $193; and the 1.7-GHz, which dropped 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 didn't touch the prices of its latest Pentium 4 models, which run at or above 2 GHz, it did cut prices on its top four Celeron processors, which are targeted at budget-minded consumers. The 1.3-GHz Celeron was reduced in price from $118 to $103, the 1.2-GHz from $103 to $89, the 1.1-GHz from $89 to $79, and the 1-GHz from $74 to $69.

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

The 2-GHz Xeon with a 256KB cache now costs $396, down from $455, and the 1.7-GHz Xeon with a 256KB cache is listed at $224, down from $256. The Pentium III 1.26-GHz processor is now priced at $202, reduced from $241. And the 1.13-GHz version now sells for $170, down from $202.

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