Intel And AMD Cut Processor PricesIntel And AMD Cut Processor Prices

Chipmakers Intel and Advanced Micro Devices Inc. both cut prices for several processors last week. Intel's biggest reduction--18%, from $163 to $133--was for the 1.6-GHz Pentium 4. The 1.8-GHz Pentium 4 fell from $225 to $193, a decrease from April, says Technology Business Research Inc. analyst Brooks Gray. The leading-edge processor price range continues to slide even though speed has been enhanced substantially, Gray says. Meanwhile, prices for AMD's 1600+ chip dropped nearly 19%, from $160 to $130. The 1700+ dropped 17%, from $190 to $157; the 1800+ chip fell 16%, from $223 to $188.