Intel Cuts Prices in Preparation for New Product Line
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Intel is moving to reduce its chip inventory and make way for new products by deeply discounting some of its Pentium 4 and Itanium processors.
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In an announcement strategically timed to lessen its impact, SanDisk admits that it must cut prices to stay competitive in a tougher NAND memory chip market. Layoffs and salary cuts for executives are also planned.
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Analysts&#39; assessments came after Intel announced last week that it was scrapping plans to develop a 4-gigahertz version of its Pentium 4 chip.
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Intel Corp. lowered its revenue projections for its third quarter yesterday, citing slow consumer purchases across the globe. The world&#39;s largest chipmaker reported that it expects revenue for the three-month period ending Sept.
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Intel has slashed prices by up to 35 percent on some of its  Pentium 4 and Itanium processors, bringing down the costs of some desktop and notebook computers by as much as &#36;200.
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Intel is on track to introduce work-sharing dual-core processors across all its product lines by the end of next year. The technology is part of a strategy shift at Intel away from processor speed and toward performance.
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(InfoWorld) - The global chip market is suffering from falling prices in microprocessors and memory chips, bad news for companies but great for users. Steep declines in DRAM (dynamic RAM) for PCs and NAND flash memory, used in a variety of gadgets including digital cameras and iPods, as well as microprocessors prompted the Semiconductor Industry Association (SIA) to slash its global sales forecast for this year to US$252 billion, just 1.8 percent growth compared to last year. The previous estimate called for sales growth of 10 percent this year. Sales of gadgets themselves are on track to meet forecasts, however, SIA said. Chip shipments overall remain healthy, as does end-user demand. But prices continue to fall for a variety of reasons, including a glut in the memory market and a price war between Intel Corp. and Advanced Micro Devices Inc. in microprocessors. "End markets continue to be strong, with consumers realizing major benefits from lower chip prices coupled with ever-increasing performance and functionality from advances in chip technology. Despite a forecast of slower growth, we expect that global sales of microchips will surpass last yearâs record level," the SIA said in a statement on Wednesday. Intel and AMD have been battling each other through price reductions for over a year now, and reports indicate that Intel will cut prices on some microprocessors again in late July. The price war has been good to consumers, delivering more technically advanced microprocessors at a lower cost. Microprocessors are generally the most expensive chip inside a PC. The DRAM market has been hit the worst. The price of mainstream 512M-bit second-generation double data rate (DDR2) DRAM that runs at 667MHz has plunged 72 percent so far this year to US$1.79 per chip, according to DRAMeXchange Technology Inc., a Taiwanese clearinghouse for the chips. The market research division of the company has noted that the chips appear to be bottoming out, and that prices could tick up a bit later this month. DRAM price reductions for users normally come a few weeks or a month after the spot DRAM market falls. NAND Flash memory has suffered a similar fate as DRAM, but not quite as steep a decline. A glut of the chips early in the year has been wiped out by memory makers, which tweaked production lines to make more DRAM instead of NAND flash. Prices of 8G byte NAND has fallen 18 percent his year to US$9.26, according to DRAMeXchange, while the 4G byte capacity has dropped nearly 15 percent to US$5.69. The SIA expects PC and mobile phone sales to rise 10 percent each this year. Mobile phone sales may give chips a bigger boost, however, because users are buying more 3G (third generation communications) handsets, which contain more chips than older phones. Sales of personal media players and digital music players are expected to grow by more than 20 percent this year, SIA said, but noted that price competition in the market will likely keep NAND flash chip prices tame. The SIA report followsÂ a similar estimation of the global chip industry by Gartner. A few weeks ago, the market researcher lowered its forecast to just 2.5 percent growth to US$269.2 billion this year, down from an earlier estimate of 6.4 percent. Â ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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Dell on Monday dropped prices on select servers, workstations, desktops, and laptops aimed at corporate customers, saying it was passing along lower component costs to buyers.
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Intel, the world's leading computer chip maker, slashes its revenue forecasts, triggering a decline in global chip stocks.
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Intel Corp., the world's biggest   microchip maker, is set to announce sweeping job cuts later on   Tuesday, the Financial Times said, amid speculation that up to   10 percent of its staff could go.
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Intel Corp. , the world's largest  semiconductor maker, said on Thursday it plans to start  shipping new processors for desktop and laptop computers in  August.
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Intel Corp. , the world's  biggest microchip maker, is set to announce sweeping job cuts  later on Tuesday, the Financial Times said, amid speculation  that up to 10 percent of its staff could go.
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Intel Corp. is slashing the prices on many of its Pentium 4 chips by as much as one-third, as well as other desktop, mobile and server processors.
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If you&#39;re in the market for a new notebook computer it&#39;s your lucky day, Intel has announced a major price cut on its chips for mobile notebooks.
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Intel Corp.  on Thursday cut its third-quarter revenue and profit margin forecast after demand for both its computer microprocessors and communications chips weakened beyond expectations. Its stock fell nearly 8 percent.
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Intel Corp. INTC.O cut prices  on its chips for mobile computers by as much as 34 percent this  week, a move that could lower PC prices from the likes of Dell  Inc. DELL.O and Hewlett-Packard Co. HPQ.N
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SAN FRANCISCO - Intel Corp. has cut prices on its computer chips by as much as 35 percent, though analysts on Monday said the cuts were probably unrelated to swelling inventories of the world&#39;s largest chip maker.