Intel unveils Pentium 4 chips, trims prices

Intel came out with four new Pentium 4 processors on Monday and at the same time enacted the first phase of a major price cut. The Santa Clara, Calif.-based chipmaker released desktop Pentium 4 chips running at 2.8GHz, 2.66GHz, 2.6GHz and 2.5GHz, and those chips will be incorporated into new PCs from Dell Computer, IBM and others. Gateway, for example, is using the 2.8GHz and 2.6GHz processors in its new Profile 4 line of computers with a built-in flat-panel monitor, which debuted Monday.

The new chips also kicked off stage one of a price reduction, something Intel hasn't done for its desktop line since June. The 2.8GHz chip will sell for $508 in 1,000-unit quantities, while the 2.66GHz and 2.6GHz will sell for $401 in volume quantities. The 2.5GHz chip will sell for $243.

With the release, the existing 2.53GHz Pentium 4 will drop from $637 to $253. Intel is expected to cut prices for the rest of the Pentium 4 line as well as the Celeron line on Sept. 1, according to sources. The discounting has already been implemented in part--dealers and distributors have been selling Intel chips at a discount recently to get rid of excess inventories during the summer sales doldrums

News source: ZDNet

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