Intel Corp. has reportedly notified its partners not to expect further price-cuts on its processors aimed at notebooks before late May, despite of lowering demand in the first quarter and rather aggressive price cuts in the fourth quarter of last year.
Some market players have expected Intel to continue its cost-cutting tactics started in Q4 2008 to support sales of notebooks amid softening demand, which would affect manufacturers with large level of Intel chip inventory, reports DigiTimes web-site. However, Intel does not plan to reduce prices further as it affects its own profit margins and revenues.
According to analysts from Mercury Research, average selling price of Intel’s mobile processor in Q4 2008 was $78, down from $87 a quarter earlier. This hardly affected the company’s performance in a significant way, but overall market situation may not be too good for aggressive and often price-cuts both for Intel as well as its customers.
Intel did not comment on the news-story.