Intel is to drop the prices of its Xeon processors due to pressure from OEMs, and before the chips have actually shipped. The company has changed its pricing strategy to tie in with its more segmented marketing strategy, and will move to a monthly rather than quarterly price cutting policy, according to sources. Its top-of-the-line 450MHz Xeon with 2Mb of cache will now be priced at $3,690 (#2,210) rather than $4,500 (#2,695) as previously announced. This may reduce demand for the 400MHz version, the source said, as its pricing may be similar to some 450MHz models, and OEMs may put off bringing out systems based on the 400MHz chip, preferring to wait for the faster processors.
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