Burt & Intel Investors - Here's the Press Release on Intel CPU price cuts.
Please note the paragraph describing the effect on AMD and NSM/Cyrix.
Paul
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biz.yahoo.com
Monday September 14, 2:10 pm Eastern Time
Intel cuts microprocessor prices up to 34 percent
SAN FRANCISCO, Sept 14 (Reuters) - Intel Corp. (Nasdaq:INTC - news) said it cut prices on some of its microprocessors as much as 34 percent, as the world's largest chipmaker seeks to spur demand and takes advantage of declining manufacturing costs.
As Intel ramps up manufacturing on newer chips -- the brains of PCs -- the cost to make them falls, allowing the Santa Clara, Calif.-based company to pass cost savings on to consumers. Intel also cuts prices on older chips to move them out and make way for faster chips.
The company said it cut the price on one of its fastest chips, the 400 megahertz (Mhz) Pentium II, by 18 percent to $482 from $589. It also shaved the cost of a 350 Mhz Pentium II by 29 percent to $299 from $423. The price of the 266 Mhz Pentium chip designed for laptop computers was cut 34 percent to $159 from $241.
The price of its speediest, top-of-the-line chip, the 450 Mhz Pentium II, was unchanged at $669.
The prices are based on lots of 1,000 chips.
Intel, which used to cut prices each quarter, has in recent months been cutting prices as often as once a month. The change reflects its decision last year to develop microprocessors for different parts of the PC market, such as corporate computing, high- and low-end consumer machines and the mobile market.
Intel typically lets its customers -- PC makers such as Dell Computer Corp. (Nasdaq:DELL - news), Hewlett-Packard Co. (NYSE:HWP - news) and International Business Machines Corp. (NYSE:IBM - news) --
know months in advance about the price cuts.
The price cuts will also put added pressure on smaller Intel rivals such as Advanced Micro Devices Inc. (NYSE:AMD - news) and National Semiconductor Corp. (NYSE:NSM - news), which make Intel-compatible
chips, analysts said.
On Thursday, the 30-year-old chipmaker said its third- quarter earnings would be better than previously forecast. It said revenue will be about 8 percent to 10 percent higher than the second quarter's $5.9 billion.
The news sent Intel stock up more than $5.00 on Friday.
On Monday, Intel stock was up 34 cents to $85.63.
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