But, just as important, consumers are also seeing benefits at the cash register. A slowdown in the PC industry has led to a constant stream of price cuts and new bargains. Intel and AMD are slated to officially cut prices by 20 percent or more April 15 and 16, respectively, according to several sources. Those coming price cuts, however, are already in effect at many retailers. Usually, Intel's wholesale prices are lower than retail prices, but that's not always the case.
All chips are in stock, according to a sales representative.
The early discounts come partly as a way to clear inventory. Distributors and dealers are cutting prices in anticipation of the mid-month discounts. When computer makers and distributors find themselves holding excess inventories of components, these companies will sell the parts to overseas wholesalers and other parties at a discount. Subsequently, these parts return to North America and sell for less than the parts coming out of the factory. Authorized dealers then have to cut prices further.