X-bit labs

Intel Plans to Adjust Pricing of Mainstream, Entry-Level Chips.

Category: CPU

by Anton Shilov

[ 02/28/2007 | 06:00 PM ]

In a bid to reduce the amount of desktop microprocessors based on the outdated NetBurst micro-architecture in the product mix and to further strengthen the attack on arch-rival Advanced Micro Devices, Intel Corp. reportedly plans to slash prices on its mainstream and low-end chips.

A Chinese-language report in Economic Daily News (EDN) news-paper indicated that Intel Corp. intends to cut prices on Intel Pentium 4 and Intel Pentium D processors in the range of 5% – 10% ahead of planned April 22 price-cut. The move will allow Intel to get rid of outdated central processing units (CPUs) and may pose a threat to AMD, whose vast majority – two thirds – of shipments consisted of single-core AMD Athlon 64 and AMD Sempron chips that are sold at pretty affordable prices in Q4 2006.

DigiTimes web-site noted that after a quiet price adjustment in January, the most affordable Intel Celeron 331 costs $34 after marginal 13% price reduction, the Pentium 4 651 and 650 are priced at $84 once their prices were cut by 48% and 69%, respectively. Price drops in the Pentium D lineup were not really significant and remained in the range between 10% and 18%, making Intel Pentium D 925 and 945 to cost $93 and $113 in 1000-unit quantities.

The gradual price reduction of the NetBurst micro-architecture-based microprocessors indicates that the company has plans to inject chips that feature modern Core 2 micro-architecture across all desktop CPU market segments.

Intel Corp. did not comment on the news-story.