Intel To Cut Cost Of Pentium Chips

Intel Corp. will cut prices more than initially planned in the second half to try to boost flagging personal computer demand and stave off increased competition, analysts said.

Intel told computer makers it will slash prices on its Pentium processors by almost 60 percent in two moves, one in July and another in November, analysts said. That could depress PC sales even more by causing customers to delay purchases until the first cut goes into effect.

Analyst Drew Peck of Cowen & Co. said the planned cuts of as much as 52 percent in July alone will be 30 percent to 40 percent steeper than he had expected.