Intel Cuts Prices of Latest Processor

September 9, 2009 · Filed Under News · Comment

Computer chip giant Intel Corp has decided to heat up the processor war by slashing prices of its latest chip based on the Nehalem design.

The world’s largest semiconductor maker announced on Tuesday that it is selling its nine new Nehalem-based processors for as low as $196 for desktop computers while those for servers would retail at $189. This is a huge drop as compared to the earlier version of the new processors based on the Nehalem model which was priced at $999 for desktop computers and as much as $3000 for servers.

The slashing of prices on the new Nehalem processors by Intel is sure to raise pressure on its biggest rival Advanced Micro Devices Inc. The second biggest computer chip maker had gobbled up a significant market share from Intel in 2006. Since then however Intel has bounced back with improvements in design and now by making those innovations more affordable, it is seeking to raise the bar for its nearest rivals.

All major computer chip makers suffered losses in the last fiscal year as the global recession depressed personal computer sales across the globe. However with improving demand, Intel has raised its fiscal outlook to $8.8 billion in the third quarter from an earlier forecast of $8.1 billion.

Tags: AMD Inc, Intel Corp, Intel processors, Nehalem processors