Intel, the world’s largest producer of computer chips by market share, plans on cutting the prices of its Pentium processors by as much as 60 percent, in an effort to keep its king-of-the-hill moniker in the chip space amid increasing competition from rival Advanced Micro Devices (AMD), Bloomberg News reports via Boston.com.
The news comes from executives at Micro-Star International and Gigabyte Technology, two Taiwanese producers of circuit boards for computers and Intel customers, who say the chip maker told them of the price reductions, according to Bloomberg. Said executives informed Bloomberg that Intel told them prices would be cut beginning July 23.
A spokesman for Santa Clara, Calif.-based Intel did not provide Bloomberg with a comment on the subject.
Alex Lin, a product marketing manager at Micro-Star, told Bloomberg that Intel also plans to cut the prices of its speedier dual-core chips by roughly 15 percent.
Last quarter, number-two chip maker AMD grabbed more than 20 percent market share in the chip space for the first time in four years, according to Bloomberg, much to the chagrin of Intel and its chief executive, Paul Otellini, who recently said he expects the company’s sales to decline for the first time in five years.
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