Analsysts say Intel Corp. will cut prices on desktop and mobile chips as much as 40 percent. Anxious to clear the supply pipeline for forthcoming Pentium 4s in a sluggish PC market, Intel is instituting unusually large price reductions. Though Intel has not confirmed the cuts, close observers expect to see the 1.5GHz Pentium 4 move from $819 to $644 and the 1.4GHz Pentium 4 to fall from $575 to $440. Similarly, if sources are correct, the 1GHz Pentium III will be reduced from $465 to $268, the 933MHz Pentium III price will move to $241, the 766MHz Celeron will hit $112, and the 733-MHz Celeron will drop to $88. Mobile chips will reportedly be cut proportionately.

In related news, The Register has speculated that Advanced Micro Devices is preparing to launch a 1.3GHz Athlon Monday, presumably to counter some of the publicity an Intel price cut of this magnitude would garner.

For more on Intel's price reductions, see news.com. Too access the 1.3GHz Athlon story, go to theregister.co.uk.