Analsysts say Intel Corp. will cut prices on desktop and mobile chips as much as 40 percent. Anxious to clear the supply pipeline for forthcoming Pentium 4s in a sluggish PC market, Intel is instituting unusually large price reductions. Though Intel has not confirmed the cuts, close observers expect to see the 1.5GHz Pentium 4 move from $819 to $644 and the 1.4GHz Pentium 4 to fall from $575 to $440. Similarly, if sources are correct, the 1GHz Pentium III will be reduced from $465 to $268, the 933MHz Pentium III price will move to $241, the 766MHz Celeron will hit $112, and the 733-MHz Celeron will drop to $88. Mobile chips will reportedly be cut proportionately.
In related news, The Register has speculated that Advanced Micro Devices is preparing to launch a 1.3GHz Athlon Monday, presumably to counter some of the publicity an Intel price cut of this magnitude would garner.