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Intel slashes chip prices

Intel slashes chip prices

Intel Corp. last week dropped the price of seven processors by up to 31%.

Intel said it was lowering the price of the 3.16-GHz Core 2 Duo E8500 by 31% to $183. Intel cut the prices of the Core 2 Duo 2.53-GHz E2700 chip and the 3-GHz E8400 model by 15% and 11%, to $113 and $163, respectively. The price tag for the company's Core 2 Q6600 2.4-GHz quad processor was reduced from $224 to $193, or 14%. In addition, the prices of three Xeon server chips were cut by 11% to 12%, Intel said.

The latest reductions come just three months after the vendor slashed the prices on about a dozen other processors by up to 50%.

Dan Olds, an analyst at Gabriel Consulting Group Inc., said Intel is likely cutting prices to reduce inventory.

"Intel wants to keep [these chips] moving out the door right up until they're discontinued," he added. "The new stuff is faster and better, so you have to cut prices on the old stuff to keep it moving."


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