Intel cuts prices on Pentium 4 and Xeon

By Alun Williams

Posted on 24 Feb 2003 at 11:38

Intel has announced its expected round of price cuts. The changes affect Pentium 4 and Xeon server processors.

The current top-level 3.06GHz P4 offering falls eight per cent, from $637 to $589. Similarly, the 2.80GHz falls six per cent to $375. Both of these processors carry 533MHz FSB (front side buses).

The 2.66GHz, 2.60GHz, 2.53GHz and 2.50GHz Pentium 4 processors are all reduced by 21 per cent. Some of these models have a 400MHz FSB. Remaining P4s are cut by 16 per cent. For example, the 2.20GHz P4 bring up the rear is cut from $193 to $163.

Although Intel generally makes another round of price cuts at this time of the year, they also often herald the release of new processors. The company prepares the ground by making existing offerings more competitive. The last such price change occurred 12 January - affecting mobile processors - ahead of the release of the 2.40GHz INtel Mobile Pentium 4-M processor.

From this, we might expect a new top end Pentium 4 to appear shortly (and AMD to make competitive price changes, too). Intel, however, is keeping tight lipped.

Intel's Xeon processor - aimed at servers and workstations - is also featured in the price cuts. While the higher-end offerings are unchanged (3.06GHz to 2.80GHz), the lower end offerings (2.66GHz to 2.20GHz) see price cuts of up to 16 per cent. For example, the 2.66GHz Intel Xeon processor is now priced at $284, down from $337.

All prices are based on OEM-style orders in 1,000 unit quantities.