Intel cuts processor prices

By Jim Carbone -- Purchasing, 4/23/2008 9:25:00 AM

Look for more price cuts from Intel. The chip maker has reduced the price of several of its microprocessors as it shifts from 65 nanometer (nm) process technology to 45nm and more price reductions are likely.

Intel slashed the price of its 2.66 GHz Core 2 Quad processor 50% from $266 to $530. The processor is used in high-end computers. Intel also cut the price of its 2.44GHz Core 2 Quad processor from $266 to $224, a 16% drop.

The chip maker also reduced the price of its 3 GHz Core 2 Duo processor 30% from $266 to $183. The processor is used in desktop computers.

The cuts are being made as Intel shifts from 65nm process technology to 45nm technology. In the past when Intel migrates to the next-generation technology, it cuts the price of the older processors.

The price cuts are likely to put pressure processor on Intel’s rival, Advanced Micro Devices (AMD) to also reduce prices. AMD has had mixed results trying to gain market share by attempting to under price Intel.

Also see: Microprocessor price war continues