Intel slashes microprocessor pricing

Intel slashes microprocessor pricing

Intel last week announced price reductions of up to 34 per cent on volume purchases of its Pentium and Celeron microprocessors for desktop and mobile PCs.

The price cuts on high-end Intel Pentium II processors were between 8 and 29 per cent, depending on the version. Under the new pricing scheme, the processor, with 512KB cache, now costs $US482 for the 400MHz version, down from $589; $299 for the 350MHz version, down from $423; $234 for the 333MHz version, down from $316 and $192 for the 300MHz version, down from $209.

Intel's 300MHz version of its Celeron processor, designed for low cost desktop systems, now costs $95, down from $112, a 15 per cent reduction.

Intel's PC processor lines aimed at mobile systems also saw price cuts.

The Pentium II mobile processor, with 512KB cache, now costs $391 for the 266MHz version, down from $444; the 233MHz version is priced at $209, down from $262, a 20 per cent decrease.

The mobile Pentium 266MHz with MMX technology now costs $159, down from $241 and the 233MHz version of this processor now costs $95, down from $134.

The price reductions are based on 1000-unit quantities and are effective immediately.

The price cuts are part of Intel's strat- egy to segment the market into basic PCs, performance PCs, servers and workstations and mobile PCs, according to company spokesman Robert Manetta. "PC microprocessor price reductions, while common, are not made on a scheduled basis, but rather in response to market demand," he said.

"That is the whole name of the game, to introduce faster processors and cut pricing on older models to make way for newer lines.

Intel Australia Tel (02) 9937 5800

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