Intel Corp will trim processor prices in January by an average of 14 percent, a smaller margin than the biggest computer-chip maker's cuts this year, Salomon Smith Barney analyst Jonathan Joseph said.
The price changes will come Jan. 27, Joseph wrote in a note to clients, citing a report Intel gave its customers. They will follow average cuts of 40 percent in August and 23 percent in October and come three months after the last reductions, compared with the two-month period between previous ones, he said.
Intel has slashed the price of its Pentium 4 by as much as 84 percent since the chip came out in November, trying to shore up demand and bolster sales of the personal computers that use it.
Currently, supply of the processor is tighter, so the company can be less aggressive with price cuts to fuel demand and stave off competition from Advanced Micro Devices Inc, Joseph said.
"The news is good for investors in Intel's stock," Joseph wrote. "Do not look for accelerated price cuts in 2002."
Tom Beermann, a spokesman for Santa Clara, California-based Intel, declined to comment on the report. The company's shares rose 91 cents to US$31.97 in midafternoon trading. They've added 6.3 percent this year.
Joseph, the top semiconductor analyst in an Institutional Investor magazine poll, Monday said he expects Pentium 4 shipments to beat his estimate of 12 million units this quarter.
In July 2000, Joseph accurately predicted a drop in sales and stock prices for semiconductor makers including Advanced Micro and Texas Instruments Inc. This year, he's correctly forecast previous Intel price moves.
An Intel 2-gigahertz Pentium 4 costs US$401 each in volume shipments. The Celeron chip for low-cost PCs sells for as little as US$64.
Worldwide PC sales dropped 12 percent to 30.6 million units in the third quarter from a year earlier, according to Gartner Inc's Dataquest unit. PC sales are forecast to decline this year for the first time in more than 15 years.
BACK IN THE NEIGHBORHOOD: The planned transit by the ‘Baden-Wuerttemberg’ and the ‘Frankfurt am Main’ would be the German Navy’s first passage since 2002 Two German warships are set to pass through the Taiwan Strait in the middle of this month, becoming the first German naval vessels to do so in 22 years, Der Spiegel reported on Saturday. Reuters last month reported that the warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, were awaiting orders from Berlin to sail the Strait, prompting a rebuke to Germany from Beijing. Der Spiegel cited unspecified sources as saying Beijing would not be formally notified of the German ships’ passage to emphasize that Berlin views the trip as normal. The German Federal Ministry of Defense declined to comment. While
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
RSS