News

Intel Cuts Processor Prices

• By Scott Bekker
• 01/29/2002

The server price cuts affected the Xeon and the Intel Pentium III Processor-S lines. Prices remained steady for Pentium III Xeons, Intel's high-end multi-processing chips for 4-way and greater servers, and Itanium, Intel's 64-bit processors for servers and workstations.

Intel reserved the server price cuts for the midrange processors in the Xeon and Pentium III Processor-S server processor lines. The chipmaker chose to cut prices on two of its Xeon processors, the 2 GHz and 1.7 GHz, manufactured under the older 0.18-micron process. Those chip prices were reduced by 13 percent to $396 for the 2 GHz and $224 for the 1.7 GHz. Prices remained the same for the 2-GHz and 2.2-GHz speeds in the 0.13-micron versions of the Xeon.

In the Pentium III Processor-S line, Intel dropped prices by 16 percent on the 1.26-GHz and 1.13-GHz chips, both 0.13 micron. They cost $202 and $170 each, respectively, in 1,000-unit quantities. Intel's top-of-the-line Pentium III Processor-S model, a 1.4-GHz chip, remains $320.

Intel also cut prices on desktop processors in the Pentium 4 line and the economy Celeron desktop line. Prices for the top three Pentium 4 processors are the same, but Intel dropped prices 12 percent to 18 percent on the next four models, which range from 1.9 GHz to 1.6 GHz.

The Celeron line was the only one to see price cuts in its top-of-the-line processors. Prices for the top four models dropped between 7 percent and 14 percent.

Intel's complete processor price list can be found here.