The 2.2 GHz Pentium 4 price cut follows Intel's introduction earlier this month of its 2.4 GHz chip. Intel typically launches new chips at about US$560 then drops the price of the previously fastest chip several weeks later.

Intel is expected to announce a new, faster version of the Pentium 4 early next month.

Meanwhile, Intel has launched an advertising campaign in Asia aimed at the consumer and business market. The campaign, worth an estimated US$75 million globally, features blue aliens using Intel-powered devices and includes print, television and online advertising. The advertisements will run in Hong Kong cinemas as well as outdoor video walls.

In one advertisement a lounging alien floats through outer space using a notebook PC accompanied by Frank Sinatra's version of Fly Me to the Moon.

The voice-over says: 'Get a powerful desktop PC without the desk. The Intel Pentium 4 Processor-M designed for notebooks.'

Research firm IDC says about 30 million notebooks will be sold this year. Intel executives had said the mobile market would be strategically important for the firm.

The alien advertisements began running in North America in the middle of last year but are new to Asia.

Intel has also expanded its channel co-op advertising programme for members of its Asia-Pacific dealer network to include reimbursement for billboard, transit, cinema and direct mail, as well as broadcast advertising.

Intel plans to double the number of dealers participating in the programme by the end of the year. Last year, the company announced dealers could use the Intel Inside logo in print advertising and on company Web sites.

Dealers are allocated marketing funds based on processor purchases.