San Francisco, July 18: Intel Corp. plans to cut prices on its Celeron desktop and notebook processors in August but maintain its higher-performance Pentium 4 prices through October, an analyst said on Tuesday. Tai Nguyen, an analyst at SIG Equity Research, said he learned of the price cuts after talking with Intel customers who have seen Intel's product roadmaps.

Those roadmaps include information about future products, as well as plans to cut prices of existing products. Intel does not disclose those plans in advance, and an Intel spokesman said the company does not comment on price cut speculation.

Intel regularly cuts prices to sell off inventory and make way for newer products, analysts have said. According to the roadmap, Intel plans to cut prices for its Celeron processor, aimed at entry level and lower-cost machines, between 5.9 per cent to 13.6 per cent, on Aug. 24, Nguyen said.

For example, a 2.6 gigahertz Celeron will drop from $103 to $89, according to the roadmap.

"By cutting the price they're probably trying to maintain their market share" against rival Advanced Micro Devices Inc., Nguyen said in an interview.

Because Intel faces very little competition from AMD in the higher performance desktop and mobile segments, he said, Intel plans to maintain prices of its Pentium 4 processor until Oct. 26.

At that time, Intel plans to cut prices for some Pentium 4 processors between 15.5 per cent and 34.7 per cent, according to Nguyen. For example, a 3 gigahertz Pentium 4 will drop from $401 to $262, the roadmap showed.
Last month, Intel cut prices of some of its Pentium 4 and Celeron microprocessors for laptops by as much as 38 per cent. Bureau Report