Intel set to cut Xeon prices by a third, launch 1MB cache version

Intel distributors were briefed earlier this week about the price changes, which include changes to the Intel Channel Rebate scheme, and about price protection on existing chips.

The 3.06A Xeon which uses the 533MHz system bus beloved of the Pentium 4s of yore, will launch on the 13th and that will precipitate an avalanche of price cuts.

It will cost $690 and will include 1MB of cache, according to our information. Its launch will push down the price of the 3.06GHz 533 Xeon to an affordable $455.

Dealers will get a $24 rebate on boxed Xeons on this date. And again, on that date, the 3.06GHz Xeon ordinaire will drop by a third, with a $16 rebate. The 3GHz will drop by 35 per cent, with a rebate of $16 as well.

The 2.8GHz Xeon, not to be compared with the "Gallatin" microprocessor of the same frequency speed will drop by nearly one third, along with the 400MHz Xeon clocking at a similar rate.

The 2.66GHz Xeon with a 533MHz system bus will drop by 10 per cent, and Intel will drop the distributor/dealer rebate to $5.

Mr 2.60GHz Xeon will drop off the road maps, but its price is likely to fall by 15%, distributors in South Africa tell us. µ