Intel will pull out its scissors next month to make the first of two price cuts scheduled for this quarter, sources say.
The chipmaker has planned the price adjustment for desktop Pentium 4 chips for late February, according to sources. It will be the first such cut for these chips since November. The price cuts for the desktop chips, including the top-of-the-line 3.06GHz Pentium 4, will range from about $25 to $50, sources said.
Intel regularly cuts its prices as part of a predetermined plan in which it brings out faster processors and moves its existing chips down in price. The company typically notifies its customers of intended price moves well in advance. In this case, the price move will help make way for a 3.2GHz desktop Pentium 4 chip due out later in the quarter.
These moves will allow manufacturers that now ship desktops with 2GHz Pentium 4 chips to fit them with 2.4GHz chips for the same price. And desktops with 2.4GHz chips will be able to move up to a 2.53GHz chip for the same price.