Intel is expected to cut prices of its most recent processors, by up to 15%, over the weekend.
The trend with Intel is to introduce new processors in January and to reduce prices by the end of the same month. A similar move is expected in April, when the new line of processors is expected.
The introduction of the Northwood core for the Pentium 4's means that the new .13 design allows for a reduction in "wafer costs" and leads to great pricing flexibility.
The 2.2 GHz Pentium 4 is currently priced at US$562 for 1,000 pieces but experts expect the price to be just under US$500 come Monday.
Such a reduction, obviously, means that prices for the 2, 1.9 and 1.8 GHz Pentium 4's will also be reduced. Prices for these processors are currently listed by Intel as being US$342, US$273 and US$225 respectively. If the keep a symmetry to their reductions the new prices will be about 15% down.
The trend has been set, fierce competition dictates prices now and Intel seem to be, gradually, responding. The .13 micron design, guarantees that more price cuts are possible.