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A few days ago we told you about the new prices of the Desktop processors from Intel. Now we suggest taking a closer look at the coming changes in the server CPU price-list:

CPUCurrent PriceApril 14May 26
Xeon 2.4  $615 (at launch)
Xeon 2.2$615$465$262
Xeon 2.0A$417$305$224
Xeon 2.0$396$316$256
Xeon 1.8$251$224$192
Xeon 1.7$224 $202
Pentium III-S 1.4$316$294 

As usual, a few comments of ours:

  • In general, Intel is selling its server processors relatively cheaply. As you can see, the cost of Xeon CPU is only $20-$40 higher than that of Pentium 4 working at the same core clock frequency. In fact, this is the price of enabled HyperThreading in Xeon CPUs, since this is the only difference between Xeon (Prestonia) and Pentium 4 (Northwood).
  • If the 0.18micron desktop CPUs cost less than their faster 0.13micron brothers, then in the server market this logic doesn’t work. Intel offers new Xeon (Prestonia) at a lower price than old Xeon (Foster) in order to speed up the migration to more progressive processors in the server field.
  • After the price-reduction on May 26, the fastest Xeon 2.4GHz CPU will cost over two times more than Xeon 2.2GHz. This is a very interesting fact, especially bearing in mind that there are no architectural differences between the two processors.
  • We would also like to note that the fastest Pentium III-S CPU is more expensive than the slowest Xeon (Foster) processor as well as the slowest Xeon (Prestonia) one. This way, Intel gives to understand that this processor is not recommended any more.
  • Besides, they also claim that when the shift to 533MHz bus is completed the CPUs with faster bus will cost about $20-$30 more than the processors with slower bus but working at the same core clock frequency. By the way, the processors for desktops should not feature the same price difference.
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