The prices listed apply to wholesale purchases of chips in quantities of 1,000. Retail prices are generally slightly higher, although the actual differences vary. The Santa Clara, Calif.-based chipmaker used to cut chip prices at the end of each quarter. But by 1998, the diversification of the product line and increasing competition led to more frequent discounts. Now, the company makes at least one price cut per month.
Some months see bigger cuts than others.
In January, the company whacked Pentium 4 prices more than 20 percent and cut mobile chips by up to 30 percent to amid a glut of PC components. A price cut on notebook chips could occur in the middle of the month to dovetail with the release of the 1GHz Pentium III for notebooks March 19. Desktops will likely see a major cut in May when the 1.7GHz Pentium 4 emerges. The price reductions come amid a slowdown in PC buying. In 2000, retail PC sales declined for the first time since the industry began keeping records.