Intel slashes chip prices in half

Intel might be milking its hexacore farm for all the cash it can eke out of it, but the chip maker has also just slashed the prices of some of its cheaper processors, cutting the cost of some of its Core i7 and Xeon chips by almost half.

The 2.93GHz Core i7 870 has seen the biggest cut, plummeting from $562 to just $294 in trays of 1,000 chips; a drop of 48 per cent. Once you've added the usual tax and UK retailer mark-up, this means you can now pick up an 870 for just £264.36 inc VAT. The cut immediately follows the launch of the low-power Core i7 870S, which is clocked at 2.66GHz and has a price of $351.

There's been a similarly dramatic price cut in Intel's Xeon line-up too, with the 2.96GHz Xeon X3470 tumbling from $589 to $328; a fall of 44 per cent.

Further down the scale, the dual-core 3.06GHz Core i3 540 can now be picked up for $117, rather than $133; a drop of 12 per cent. Meanwhile, Intel's budget line of dual-core Pentium-branded chips has also seen a couple of price-snips. The 3.06GHz Pentium E6600 has been nudged down by 11 per cent ($84 to $75), while the E5500 has dropped by 15 per cent ($75 to $64).

The price cuts were only officially announced yesterday, along with the new hexacore Core i7 970, so it may take a few days for retailers to drop their prices accordingly.