Intel In Major Price Rollback

Intel

The chip maker cut the list price of its 2.2GHz Pentium 4 to $423 from $562 each in 1,000-unit quantities. The pricing action was effective April 14.

Such a cut was not entirely unexpected, as Intel earlier this month rolled out its highest-end Pentium 4, at 2.4GHz, and priced it at $562. However, the pricing rollbacks went further down the line, according to a new price list published by Intel.

The 2A GHz Pentium 4 was dropped to $284 from $364, a 22 percent rollback; the 2GHz Pentium 4 was cut to $262 from $342, a 23 percent cut; and the 1.9GHz Pentium 4 was dropped to $225 from $241, a 7 percent cut. All prices are based on 1,000-unit quantities.

Some Pentium III desktop processors were dropped by 32 percent, and the company also cut prices on several of its mobile processors.

The company also reduced prices on its Xeon processors for servers. The top-of-the-line Xeon at 2.2GHz for servers and workstations was cut to $465 from $615 in 1,000-unit quantities, a 24 percent decrease, while the 2A GHz Xeon was cut to $305 from $417, a 27 percent decline.

The LV/ULV Mobile Pentium III, at both 866MHz and 850MHz, was dropped by 24 percent in price to $241 from $316. And the same processor at 800MHz was dropped to $198 from $241, according to Intel.

Intel spokesmen were not immediately available for comment but generally do not comment on pricing actions beyond noting that the company adjusts its pricing from time to time based on market conditions.