Intel Cuts Certain Chip Prices

Intel Corp. cut prices on some of its oldest microprocessors by as much as 48%, but reductions were more modest on its newest models. The Santa Clara-based chip giant said it slashed prices on its 200-megahertz Pentium chips by 48% to $257 from $498 and trimmed prices on its 166-megahertz Pentium Pro chips by 34.2% to $412. The price cuts, which are announced every quarter by Intel, were much more modest for the company’s new line of Pentium chips with MMX multimedia technology. The 200-megahertz Pentium chip with MMX technology dropped 8.7% to $492, while the top-of-the-line 200-megahertz Pentium Pro chip was unchanged at $1,035. Industry analysts said Intel’s price cuts were in line with market expectations. Intel shares gained $2.50 cents to close at $146.375 on Nasdaq.