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Intel microprocessors become cheaper

San Francisco, Sept. 4 (Reuters): Intel Corp. has cut prices on its microprocessors by as much as 52 per cent over the US holiday weekend as the world’s largest chipmaker makes room for faster chips and passes on manufacturing efficiencies to customers.

The price cuts, made on Sunday, come less than a week after Intel introduced its fastest Pentium 4 to date, running at 2.8 gigahertz, or 2.8 billion clicks per second. Intel, for example, cut the price of its Pentium 4 chip running at 2.4 gigahertz by 52 per cent to $ 193 from $ 400 each, in lots of 1,000.

The price cuts, which were largely expected and typically come within a week or so of a new chip introduction, follow price cuts by its chief rival in the market for microprocessors, Advanced Micro Devices Inc., on August 21. Intel unveiled its 2.8 gigahertz Pentium 4 on August 26. Intel also pared prices on its Pentium 4 chip operating at 2.4 gigahertz and 2.26 gigahertz by 20 per cent. The 2.4 gigahertz and 2.26 gigahertz chips now cost $ 193, down from $ 241.

The Santa Clara, California-based company also reduced prices on its Celeron processors, which are aimed at entry-level PCs costing $ 600 or less.

Declines ranged from 14 per cent to 19 per cent, with the 1.8 gigahertz Celeron now costing $ 83, down from $ 103, representing a decline of 19 per cent. Intel cut the price of its slowest Celeron by 14 per cent, and the 1.3 gigahertz Celeron now costs $ 64, down from $ 74.

The recently introduced Pentium 4M processor, designed for use in laptop computers, also saw prices fall. The fastest version of that chip, running at 2 gigahertz, now costs $ 348, down 45 per cent from $ 637. Its slowest Pentium 4M now costs $ 171, down 29 per cent from $ 241.

Intel also cut prices on its Celeron chips for laptop computers by 17 per cent to 44 per cent, and prices for its Xeon chips for server computers, by 15 per cent to 19 per cent. The company also reduced prices on its Pentium III-S chips for servers by 17 per cent to 33 per cent.

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