Fri, Mar 09, 2001 EST
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Intel Slashes Desktop PC Chip Prices
Associated Press
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SANTA CLARA, Calif. — Chip-making giant Intel Corp. has cut prices by as much as 19 percent on some of its processors used in desktop computers, with smaller markdowns for top-of-the line Pentium 4 models.

The cuts, which took effect Sunday and were confirmed by the company Monday, come as inventories build and demand for new computers slows.

Intel slashed the price of its 800 megahertz Celeron to $112 from $138, a 19 percent decline. The 766 MHz Celeron dropped 8 percent, to $103 from $112.

Its 1 gigahertz Pentium 3, meanwhile, now costs $241, compared to $268 before the price cut. The 933 MHz model fell 7 percent, to $225 from $241.

The new Pentium 4's prices also fell — though at the much lower rates. The 1.5 GHz Pentium 4's price dropped 1 percent, to $637 from $644. The 1.4 GHz model went to $423 from $440, and the 1.3 GHz version fell to $332 from $336.

The new prices apply to wholesale purchases in lots of 1,000.

Intel last adjusted its prices in January, and such moves are common in the semiconductor industry.

"Our strategy is to align the prices of the individual products to the individual markets," said Bill Calder, an Intel spokesman.

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