Intel Cuts Chip Prices to Regain Ground in Low-Cost PC Market

Intel Corp. cut prices on its Celeron processors for low-cost personal computers by as much as 24%, as the largest chip maker looks to crush competition from Advanced Micro Devices Inc. Intel cut the price of its fastest Celeron to $133 from $158. The 366-megahertz Celeron was cut to $93 from $123. AMD in turn lowered the price of its most powerful chip, the 400-MHz K6-2, by 15% to $134 from $157. Both companies’ cuts had been scheduled for later this month.

Intel is intent on regaining market share lost to AMD for chips that power low-cost PCs and is speeding up its price cuts as well as the introduction of faster processors.

Sunnyvale, Calif.-based AMD, which doesn’t have the faster chips and sells its products for as much as 25% less than Intel’s, said last week that it may report a first-quarter operating loss because of intense competition from Intel.

Shares of Santa Clara, Calif.-based Intel rose $4.44 to close at $132 on Nasdaq. AMD rose 31 cents to close at $17.13 on the New York Stock Exchange.