Intel has announced across-the-board price cuts on a global scale by as much as 57 per cent, while competitor Advanced Micro Devices has dropped prices on competitive chips even further.
The largest price cut for Intel is in the 300MHz Pentium II processor, with error- correcting code cache memory.
A spokesperson for Intel Australia said similar percentage cuts are being made here. This drops the local price to under $1000.
Intel had earlier planned not to cut the price on the 300MHz processor, which is just beginning to ship in volume, but higher production yields allowed the cut.
A 200MHz Pentium MMX desktop processor dropped 49 per cent in price, as did the 166MHz classic Pentium.
The 133MHz and 150MHz classic Pentium processors dropped in price by 29 per cent and 34 per cent respectively.
The 166MHz Pentium MMX will become the entry-level Intel processor once stocks of non-MMX Pentium chips are depleted.
Intel has also cut prices of mobile chips by between 43 per cent and 46 per cent.
In the US, AMD cut prices on its K6 processors to stay below Intel's. The AMD-K6-233 price dropped to $US290, the -200 to $US189, and the -166 to $US109. These compare with $US386, $US252, and $US145 for the similar-speed Pentium MMX processors, and $US530 for the 233MHz Pentium II CPU.
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