Intel cuts prices on Celeron, PIII

The chip giant implemented the price cuts Sunday, according to information on the company's Web site.

Intel's Celeron chips are aimed at entry-level PCs, or systems priced below about $US1000. The price of its fastest Celeron, an 850MHz chip, was cut by 38 per cent to $US86. The price of the 800Mhz part was cut by 20 per cent, to $US74. Prices are per chip for 1000-unit quantities.

The three slowest Celeron processors, which run at 667MHz, 700MHz and 733MHz, were all reduced to the same price, $US64. Intel typically does this when it wants to phase out older chips and keep its chip line-up lean, analysts have said. PC makers have little incentive to buy the 667MHz part when they can get a faster chip for the same price.

In the Pentium III desktop line, Intel cut the price of its two fastest chips, with the 1GHz version dropping 14 per cent to $US193, and the 933MHz version dropping five per cent to $US183.

The chip maker also cut prices on some of its Pentium III mobile chips, with the 1GHz version reduced by 12 per cent to $US637, and the 900MHz version tumbling 17 per cent to $423.

Finally, Intel cut the price of its 700MHz low-voltage Pentium III processor by 24 per cent, to $US241. The 600MHz version of that chip was reduced in price by 18 per cent, to $US198, according to the information on Intel's Web site.

As always, Intel said the price cuts are part of its typical pricing activity. Prices for its other processors, such as the Pentium 4 and Pentium III Xeon, remain unchanged.

Earlier on Tuesday, Intel officially lifted the hood on its new Itanium processor, a 64-bit chip for use in high-end servers and workstations.

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