Intel Trims Pentium Prices

Intel has cut the prices of its three fastest Pentium 4 processors and of some of its 0.13-micron Pentium III Processor-M chips. The cuts could bring down the price of Intel-based business and consumer PCs between now and the U.S. holiday season.

The price drops took effect on Sunday, according to Intel. The price of the fastest Pentium 4 processor, the 2-GHz version, was cut 29 percent to $401 in 1,000-unit quantities, a standard measurement in chip sales. The 1.9-GHz version of the chip was reduced 27 percent, from $375 to $273, while the 1.8-GHz version had its price cut by 12 percent, from $256 to $225.

Intel's cuts were not quite as drastic in the Pentium III desktop processor family. The fastest member of that family, the 0.13-micron 1.2-GHz processor, had its priced trimmed by 10 percent, bringing it from $268 to $241, while the 0.13-micron 1.13-GHz and 0.18-micron 1.1-GHz versions of the family both had their prices cut by 14 percent, bringing them both to $193. The 0.18-micron 1-GHz version of the Pentium III also had the price trimmed 10 percent, from $193 to $173.

Six-Month Drop

Intel's previous significant price cuts on its Pentium CPUs occurred in March, when the company shaved a few dollars off the prices of its desktop chips to help boost the adoption of its then recently launched Pentium 4.

Intel said then the cuts were part of its normal pricing activity. The discounts were deepest on its Celeron processors, but Intel also cut its Pentium III prices by as much as 11 percent and Pentium 4 by up to 4 percent. At the time, with PC sales in a slump, Intel said the price cuts could give PC makers added incentive to cut prices on new systems.

At that time, Intel brought the price of the 1-GHz Pentium III processor to $241--which now buys a 1.2-GHz PIII. The fastest P4 that enjoyed a price drop then was the 1.5-GHz model, which came down to $367--more expensive than a 1.9-GHz CPU today.

Workstations Get Break

The current round of cuts also featured price drops in Intel processors for servers and workstations. Intel cut the price of the 0.18-micron 2-GHz Xeon processor by 26 percent, from $615 to $455.

Intel also trimmed the prices of the Pentium III Processor-S family, its 0.13-micron processors aimed at the blade and ultrathin server market. The 1.26-GHz version of the chip was reduced from $337 to $300, an 11 percent cut. The 1.13-GHz version was given a 9 percent price cut, bringing it from $257 to $235.

The 1.13-GHz Pentium III Processor-S was the first 0.13-micron processor shipped by Intel; it started shipping in May.