Intel has quietly introduced a version of its latest Pentium 4 microprocessor at a sharply reduced price as it attempts to jump-start flagging PC sales and boost demand for its newest chips.
The latest Pentium 4 runs at 1.3 GHz, slightly slower than Intel's 1.4 GHz and 1.5 GHz microprocessors.
But at $409 (€432) it is more than half the price of the fastest Pentium 4.
Intel's goal is to push the Pentium 4 into the high volume mainstream market and it expects PCs using the chip to sell for as little as $1,500 rather than the $2,300 to $2,500 range for current Pentium 4-based PCs.
The latest move threatens to cut into profit margins.
The Pentium 4 is an expensive chip to make because it is twice the size of the Pentium III.
Intel's Leixlip, Co Kildare, plant produces a version of the Pentium 4 chip.
Intel denied that the new chip could hurt sales of the more profitable high-end Pentium 4 microprocessors.
"There shouldn't be much risk of cannibalising sales of higher-end Pentium 4s because those are in demand from professional users and games enthusiasts that require as much processing power as possible," Intel said.
Intel has a lot riding on the success of the Pentium 4 microprocessor, which will replace its mainstream Pentium III.
But it is feeling the effects of slower growth in PC sales and there are as yet no mainstream applications that are designed to make use of specific higher performance Pentium 4 features and prompt PC users to upgrade their systems.
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