Intel slashes processor prices

Intel has seen a dramatic decline in quarterly sales

Intel has announced a number of broad price cuts in its processor ranges, including reductions of almost 50 per cent on its dual-core Celeron and Xeon products.

The mobile Celeron 570 has been reduced by a significant 48 per cent, while quad-core processors such as the Q9650 have been cut by 40 per cent. Intel's Xeon processors have also been cut by about 40 per cent.

The reductions come at a time when the company may be trying to regroup some cash. Intel reported its fourth-quarter revenue results this weekend, which included the billion-dollar financial impact of its investment in WiMax provider Clearwire.

Intel also recently announced that quarterly sales fell 23 per cent from a year earlier to $8.23bn (£5.6bn).

"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," said Intel president and chief executive Paul Otellini on announcing the results.

"While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward.

"Our new technologies and new products will help us ignite market growth and thrive when the economy recovers."