Intel To Cut Pentium Prices

Intel Corp.is expected to slash prices of the Pentium microprocessor, the engine of most of the worlds personal computers, by up to 50 percent . The worlds biggest chip maker cuts Pentium prices about once a quarter, but this years scheduled summer price cut will be steeper than usual, analysts said. Whats more, Intel will cut prices again in November, a scheduled price cut it skipped last year. Intel has to get rid of its supply of an older generation of Pentium chips. The company also is moving to stay ahead of competitors like Advanced Micro Devices Inc. and Cyrix Corp. which are supplying state-of-the-art chips for lower prices, analysts said. For the first time in 10 years, Intel has credible competition, said Drew Peck, chip analyst at investment bank Cowen & Co. The price of the low-end Pentium 133 and Pentium 150 are expected to be cut to $93 from about $130 to $150 currently, according to the Microprocessor Report, an industry newsletter. The price of the high-end Pentium MMX 233 is expected to be cut to $375, down from $594.