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|14th January 2009, 18:14||#1|
Join Date: May 2002
Intel Reportedly Cutting Prices
Intel (INTC) plans to cut prices on its quad-core, dual-core and Xeon processors on January 18, according to Pacific Crest analyst Michael McConnell. He sees cuts of 15%-40$ on quad-core processors, 13% on dual-core chips and 15%-40% on Xeon quad-core server processors. He contends the timing of the cuts is unique, with scheduled price cuts typically occurring in April and October.
McConnell says the price cuts in part likely reflect excess inventory. He sees Intelís inventory up 13% to $3.85 billion in Q4. Another factor, he says, is that the company may be losing share at Hewlett-Packard to Advanced Micro Devices. He writes that checks find that recent 20% price cuts by AMD on quad-core 45 nm Shanghai server processors could boost the companyís unit share at HP in Q1 to the detriment of Intel, forcing them to respond with price cuts of their own.
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