Intel slashes prices, PCs to be cheaper

BANGALORE: PCs will become cheaper from next month as Intel, the popular

processors among vendors and PCs, on Tuesday announced a price cut, as much as

38 per cent on its Pentium III and Celeron processors.

The price cuts were first announced in the US and was later confirmed by

Intel’s office in India. Giving details on the price reduction, Intel India's

national channel sales manager Amar Babu said, "The price cuts are the same

all over the world. But, the price reduction varies with 38 per cent being the

maximum cut."

According to sources, price of 850MHz Celeron, introduced in early April,

will be reduced by 38 per cent. The 800MHz Celeron fell 20 per cent and the

company has also cut back prices for its 667MHz, 700MHz, 733MHz and 766MHz

Celeron chips that range between seven per cent and 16 per cent.

Prices on mobile PIII processors have also been reduced by 24 per cent. The

900 MHz mobile Pentium III has been reduced by 17 per cent, while the 1GHz was

lowered by 12 per cent .The largest mobile price cut made by Intel was on the

700MHz "low-voltage" Pentium III where the chip price was reduced by

24 per cent. Intel also sliced the price of its 1GHz desktop Pentium III chip by

14 per cent and Pentium 4 by almost 50 per cent.

"The general price ranges in India will begin to show changes within one

or two days after the announcement, depending on the inventory distributors have

stocked. PC price will come down, but the price range will depend on various

configurations available with different vendors," said Babu

Though Intel has called the price cuts as a regular exercise and in response

to the ‘popularity’ of the product, analysts, however, feel the move was

necessitated by the release of upgraded version of its processors and a reaction

to a similar price cut by its rival AMD. AMD had also slashed prices on its

popular Athlon processors by almost 45 per cent on May 2, this year.

However, Genuine Intel Dealers (GIDs) are upbeat about the price drop and are

hoping for a drop in PC prices. Said Jagdish of Connoi in Bangalore: "The

prices can drop anywhere between Rs 3,000 to Rs 4,000 because the excise duty

and other import duties also come down simultaneously with the cut. This will

open the market and pave way for more purchases by the consumers."

The new 900MHz and 950MHz Celeron chips is to be released by the second half

of the year. This apart, several new mobile chips, including 1.06GHz and 1.13GHz

mobile Pentium III processors, are expected to be unveiled, this July.