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Intel Corporation

Intel cuts Pentium prices for clear-out

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Chipmaker Intel has cut the price of its microprocessors including its second-fastest Pentium 4.

The move maintains the company's strategy of lowering product prices to make way for new processors.

Earlier this week Intel cut the price on its Pentium 4 2.2 gigahertz chip 25 per cent to US$423 each from US$562. It also cut Pentium 4 chips running at 1.9 GHz and 2.0 GHz by 7 per cent and 23 per cent respectively.

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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.

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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.

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