Intel chops processor prices in half

 

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By Reuters

Posted on 20 Jan 2009 at 15:12

Intel has cut the price of some processors by almost half as it confronts slumping demand and new lower-cost chips from AMD.

The price of Celeron 570 processors has dropped 48% to $70 whereas the company's Core 2 Quad Q9650 desktop processor dropped 40% to $316.

The price of Intel's three most expensive desktop chips remains unchanged, however.

Intel was not immediately available for comment.

The company had said it expects margins to bounce back to "healthy" levels by the second half of 2009, but held back on giving detailed quarterly forecasts when it issued earnings last week, citing economic uncertainty.

Intel's profits fell by 90% year-on-year in the last quarter, with revenues falling by $2.5 billion.