As expected, Intel has cut the prices of several of its processors, including its higher-end Core 2 Quad chips for desktops. In addition, Intel cuts prices on several of its other processors, including some of its Xeon chips for single-socket servers and older Pentium and Celeron microprocessors for both desktops and laptops. The cuts come after Intel announced that its profits for the fourth quarter were well below previous expectations, as demand for PCs, servers and other hardware slows down. The prices cuts also allow Intel to make room in its inventory for more expensive processors based on the new Nehalem microarchitecture.
has cut the prices for several of its microprocessors, including its high-end
Core 2 Quad processors for desktops and its line of Xeon chips for
single-socket servers, as the
company looks to reduce its processor inventory and make room for a new line of
chips based on the Nehalem microarchitecture.
The prices cuts, which were officially posted Jan. 18, followed the release
fourth-quarter 2008 financial results earlier this month.
During the last
quarter of 2008, Intel recorded revenue of $8.2 billion with a net income of
$234 million, or 4 cents per share. By comparison, Intel reported a net income
of $2.3 billion, or 38 cents per share, in the fourth quarter of 2007, with
revenues of $10.71 billion.
downbeat fourth-quarter numbers were a result of less demand for PCs, server
and other hardware as the U.S.
economy deals with a recession and growth in other parts of the world, such as Western
Europe, has slowed down.
Intel, this combination of different economic factors means that the company
has more chips on hand that it can sell, and reducing prices
is one way to
cut the amount of inventory in both its own channel as well as the channels
that supply PC vendors with processors. The price reductions also allow Intel
to make room for new processors based on the Nehalem
The more significant change within Intel's pricing scheme is within its Core
2 Quad line for high-end desktops. Intel cut the prices on five processors
within the Core 2 Quad family, and the company also added three new processors
to the lineup.
Intel reduced the price of its Core 2 Quad Q9650 processors (3GHz) by 40
percent, which reduces the price from $530 to $316. In addition, the company
cut the price of the Core 2 Quad Q9550 (2.83GHz) 16 percent from $316 to $266;
the Q9440 (2.66GHz) 20 percent from $266 to $213; the Q8300 (2.24GHz) 18
percent from $224 to $183; and the Q8200 (2.33GHz) 16 percent from $193 to
$163. Intel also added several processors to the lineup, including the Core 2
Quad Q9550s (2.83GHz) for $369, the Q9440s (2.66GHz) for $320 and the Q8200s
(2.83GHz) for $245.
Other desktop price cuts included the Intel Core 2 Duo E7400 (2.8GHz), which
Intel reduced 15 percent from $133 to $113. Intel also added a Core 2 Duo E7500
processor (2.93GHz) to the lineup for a price of $133.
In addition, Intel cut the prices on some of its older processors for
desktops. Intel cut the prices on both its dual-core Pentium E5300 (2.6GHz) and
E2200 (2.4GHz) by 14 percent. The E5300 now costs $74, and the E2200 costs $64.
The company also cut the Pentium E5200 (2.5GHz) processor 24 percent from $84
to $64 and added a dual-core Pentium E5400 processor (2.8GHz) at a cost of $84.
The price of the dual-core Intel Celeron E1400 processor (2GHz) was slashed
19 percent from $53 to $43.
Intel also announced price reductions on some of its Xeon processors for
single-socket server systems.
The Intel Xeon X3370 processor (3GHz) was reduced 40 percent from $530 to
$316. Intel also reduced the prices of three other Xeon processors by 16
percent. The Xeon X3360 processor (2.83GHz) now costs $266, the Xeon X3350
(2.66GHz) now costs $266, and the X3330 (2.66GHz) now costs $224.
Finally, Intel reduced prices on several laptop processors.
Intel cut the price of the Core 2 Duo P8600 processor (2.4GHz) 13 percent
from $241 to $209.
Intel also cut the prices of several of its older Celeron mobile processor
from their original prices down to $70 per processor. Those $70 laptop
processors include the Celeron 585 (2.66GHz), the 570 (2.26GHz), the 560
(2.13GHz), the 540 (1.86GHz) and the 530 (1.73GHz).
All the prices included in the Jan. 18 price cuts are based on shipments of
1,000 processor units.