Thanks xStainDx. Intel lowered prices on its Pentium M processor over the weekend--a move that could help take some pressure off PC makers. The Santa Clara, Calif.-based chipmaker cut prices by as much as 34 percent on its Pentium M chip for notebook PCs.
Intel usually cuts prices to make room for new processors and to encourage PC makers to move to higher clock speeds on their current processors. The company sometimes lowers prices as a competitive weapon against rival Advanced Micro Devices.
However, this time the price drop, along with additional cuts expected later this month on desktop chips, could also help offset cost increases on some components.
While the overall cost of components that go into building PCs is still moving downward, prices on Dynamic RAM (random access memory), for one, have increased. Meanwhile, demand for notebooks, flat-panel displays and LCD (liquid-crystal display) televisions has put the squeeze on certain LCD panel sizes. Analysts at IDC, for example, reported that 15-inch LCD panels are in tight supply and commanding higher prices in some cases.
Intel cut list prices on all but one of its Pentium M chips. The 1.7GHz Pentium M, which cost $637, is now listed at $423. Meanwhile, Intel reduced the price of its 1.6GHz Pentium M by 31 percent from $423 to $294.
News source: CNET News - Intel nips Pentium M prices
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