Intel is to accelerate its price-cutting programme and bring forward the launch of new chips to boost its sales, according to analysts. The moves should result in lower system prices for firms looking to replace current hardware.

In an attempt to stimulate the market, price cuts scheduled for late October are now expected to happen at the start of September, according to Jonathan Joseph, an analyst at financial services firm Salomon Smith Barney. The cuts are intended to coincide with the launch of the 2.8GHz Pentium 4 processor, which has itself been brought forward.

Pentium 4 to cost less

Volume prices for the current fastest Pentium 4 model, the 2.53GHz, are expected to drop by 37 percent from $637 to $400. The new 2.8GHz part will then launch at the $637 mark in 1,000-unit quantities. Other Pentium 4 chips will also see reductions.

Joseph said moving the price cuts to the beginning of September was an indication that Intel was still unsure about customer demand for that month, one of the most important of the year.

Intel president Paul Otellini has said the firm also plans to launch a 3GHz version of the Pentium 4 in time for the busy Christmas sales season. This part had originally been scheduled for release sometime next year.

Other expected moves by Intel include the release of a 2.2GHz mobile Pentium 4 chip before the end of the year. The forthcoming energy-efficient chip for notebooks, codenamed Banias, is also likely to hit the shelves earlier than expected. Banias is expected to appear under a new brand name rather than some variant of the current Pentium brand.

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