Intel cuts prices and plans new chips

Chip giant Intel slashed the prices of many of its faster desktop microprocessors on Sunday, fulfilling widespread expectations.

Almost all of its Pentium III processor range has been reduced by around 25 percent. Prices for 800MHz and 733MHz Pentium Xeon III chips were similarly cut. High-end Celeron chip prices were also dropped, although there were no price cuts in the mobile Celeron or Pentium range.

In the meantime, sources said that next month the company will launch four chips, including a set of Pentium IIIs and a pair of Celerons. The Celerons will offer 566MHz and 600MHz clock speeds, while the Pentium III chips will offer 850MHz and 866MHz.

Intel routinely reassesses the pricing of its microprocessors. A company spokesman says that this change reflects a growing demand for high speed chips, as well as increased availability on the part of Intel.

Intel last changed its microprocessors pricing range on 23 January.

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