Intel cuts quad-core chip prices by 40%

Intel on Tuesday announced price cuts across a wide range of chips used in mobile and desktop PCs, including cuts of up to 40% for its quad-core chips.

Intel's Core 2 Quad Q9650 processors are now priced at US$316, a 40% drop from December. Other Core 2 Quad chip prices were cut between 16% and 20%. The quad-core chips are used in high-end desktops like gaming systems.

Intel's move could be a response to increasing price pressure exerted by rival Advanced Micro Devices, which recently announced the Phenom II quad-core chips for high-end desktops. AMD has priced its Phenom II quad-core chips between $235 and $275.

Intel also cut prices of its Xeon chips for servers and Celeron processors for mobile devices by up to 48%. The quad-core Xeon 3370 is now priced at $316, a 40% drop from December, while the Celeron 570 chip was cut by 48% from $134 to $70.

Amid the price drops, Intel also introduced three power-efficient quad-core chips with the "s" moniker. The Core 2 Quad Q9550s processor includes 12MB of L2 cache, runs at 2.83GHz and draws 65 watts of power. The chips are priced at $369. The chip is power-efficient version of the Core 2 Quad Q9550 chip, which draws 95 watts of power.

Intel also introduced the Core 2 Quad Q9400s processor, which runs at 2.66GHz, and the Core 2 Quad Q8200s, which runs at 2.33GHz. This chips are priced at $320 and $245 respectively.