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Thu, May 30, 2002 - Page 21 News List

P4 prices slashed ...


Computer prices are likely to drop worldwide after dominant computer-chip producer Intel slashed prices. The price cuts went into force Tuesday on Intel's Pentium 4 desktop processors, mobile processors and Xeon processors for server computers. The cuts included a 29-percent price reduction on the Pentium 4 running at 2.4 gigahertz. It will now sell for US$400, down from from US$562, in quantities of 1,000. Intel also cuts its fastest laptop chip by 45 percent, to US$348 from US$637. The Xeon processor, which runs at 2.2 gigahertz, will now cost US$262, down 44 percent from US$465. The company said that the cuts were the result of multi-billion dollar investments in recent years to upgrade production facilities. Industry analysts said that Intel's price cuts would quickly lead to a drop in computer prices, perhaps enough to reinvigorate the struggling market for PCs.

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