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Intel tweaks CPU prices

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Intel's new price list came into effect yesterday - there are cuts on middle-rank desktop P4s and Celerons, and Xeon and Pentium III-S server chips.

For the P4 line prices are cut for the 1.6GHz (down 18%$133), 1.7GHz (-16% to $166), 1.8GHz(-14% to $199) and 1.9GHz(-12% to $241).

The Celeron range sees prices fall for 1.GHz (-7% to $69), 1.1GHz (-11% to $79), 1.2Ghz (-14% to $89) and 1.3GHz (-13% to $103).

Two Xeons, the 1.7Ghz with 256k cache and the 2GHz, also with 256K cache have new prices, both down 13 per cent to $224 and $396 respectively.

And two Pentium III Processor-S are also cut, 16 per cent each. The new prices for the 1.13GHz and 1.16Ghz are $170 and $202.

All prices are for 1,000-tray quantities.

All in all, a fairly average round of price cuts for Intel. The cuts on desktop CPUs will flush out inventory in the mid-ranks, paving the way for newer parts; system builders will start ordering again - buying drops away in the week or so before a price cut. (In the absence of price protection, Intel is obliged to flag cuts well in advance, to ensure that smaller customers aren't caught out too much).

As for Johnny Punter - cheaper CPUs will not translate to cheaper system prices, as the cuts are not great enough to compensate for the recent price rises for DRAM. ®

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