Intel Slashes Prices on Its Microprocessor Lineup

Intel Corp. will cut prices across the board on its stable of computer chips, from Pentium to Core 2 Quad processors, to reduce inventory on hand in the wake of the global economic slump.

Last week, Intel announced its annual financial results, reporting revenue in 2008 of US $37.6 billion, down 2 percent from 2007.

"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," Intel CEO Paul Otellini wrote in the statement. "While the environment is uncertain, our fundamental business strategies are more focused than ever."

According to numerous press accounts, the world's largest chipmaker will slash prices on its existing wholesale stock to make way for its next-generation Nehalem line of 45-nanometer hi-k metal gate silicon technology.

The price cuts span the range from low-end laptop to high-end server chips. For example:

  • Celeron Dual-core E1400 processors reduced 19 percent to $43.

  • Pentium Dual-core E5300 processors reduced 14 percent to $74.

  • Core 2 Duo E7400 processors reduced 15 percent to $113.

  • Xeon X3370 processors reduced 40 percent to $316.

  • Core 2 Quad Q9650 processors reduced 40 percent to $316.

A news item from PC Magazine today concludes that the big news lies in the price cuts in the Core 2 Quad line. "The prices not only dropped the Core 2 Quad into a more competitive position with AMD, but also shook up Intel's price-performance hierarchy," the magazine noted.

Now, its up to the personal computer sector to revive interests in its flagging products with dramatic discounts to attract consumers again.


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