Intel Slashes Prices of Older Pentium 4 Chips

Intel Corp. cut prices of its older Pentium 4 computer chips by as much as 52% after the world’s biggest semiconductor maker started selling faster models last week.

Intel reduced the cost of a 2.4-gigahertz Pentium 4 to $193 from $400 and lowered the prices of 2.26-GHz and 2.2-GHz versions 20% to $193 each in 1,000-unit shipments.

Analysts predicted these reductions earlier this year, and Intel often chops prices to make way for new products.

The Santa Clara, Calif.-based chip maker unveiled Pentium 4s that run as fast as 2.8 GHz last week as the company tries to shore up sales after the industry’s worst-ever slump.

Intel is moving up product introductions and plans to roll out a 3-GHz processor this year.

Intel shares fell 81 cents to $15.86 on the Nasdaq Stock Market.