Intel Cuts Xeon, Core Duo Chip Prices

Intel is dropping the prices of several Xeon server processors and its Core 2 Duo and Core 2 Quad desktop chips. Intel is reducing the price of its processors less than a week after the chip maker announced its positive 2008 second-quarter earnings.

Intel is cutting prices on some of its Xeon server processors as well as several of its Core 2 Duo and Core 2 Quad desktop models.

The changes to Intel processor pricing were posted on the company's Web site July 20, and the new prices come less than a week after Intel posted its second-quarter financial results, announcing that it had revenues of $9.5 billion for the quarter.

Intel tends to change the prices of some its older chip models following the announcement of its quarterly results and as the company heads into a new quarter. In this case, Intel cut the prices of some of its newer 45-nanometer processors as well as older 65-nm models.

In addition to the price cuts, Intel also officially posted the five new laptop models that it introduced with the Centrino 2 mobile platform that the company officially launched July 14. These processors include the Core 2 Duo T9600 (2.8GHz), the T9400 (2.53GHz), the P9500 (2.53GHz), the P8600 (2.40GHz) and the P8400 (2.26GHz). The prices for these chips range from $209 for the P8400 to $530 for the T9600.

The price cuts include a 14 percent reduction to the price of Intel's quad-core Core 2 Quad Q6600 desktop processor (2.4GHz) from $224 to $193. This high-end desktop processor is built on the company's older 65-nm manufacturing process.

Intel also cut the prices of several of its dual-core desktop models. The company cut the prices of its Core 2 Duo E8500 (3.16GHz) chips by 31 percent from $266 to $183, and the E8400 (3.0GHz) processor 11 percent from $183 to $163. In addition, Intel cut the E7200 (2.53GHz) chip 15 percent from $133 to $113. All of these processors are built on the 45-nm process.

The company also cut prices on its Xeon processors for single-socket systems. The reductions include the Xeon X3220 (2.4GHz) and the X3210 (2.13GHz), which were each reduced 12 percent from $224 to $198. The price of the Xeon E3110 dropped 11 percent from $188 to $167.

All the new prices are calculated in 1,000-unit shipments.