Intel plans to slash prices 40-60% for quad-core server processors in order to achieve its shipment goal, according to industry sources.

Intel will cut the prices for one-way server Kentsfield processors on July 22 along with price reductions for desktop processors, while two-way server Clovertown processors will see prices slashed at the end of July, the sources said.

The Kentsfield Xeon X3210 and X3220 will have their prices cut to US$224 and US$266 respectively, while prices for the Clovertown Xeon E5310, E5320, E5335, E5345, and X5355 will go down to US$209, US$256, US$316, US$455, and US$744 respectively, the sources said.

In response to the Intel pricing plan, Taiwan's server makers said it would stimulate demand in the server market in the second half. But they also expressed the worry that if AMD lost the battle to Intel in the quad-core server processor market, the server makers would have few bargaining chips in their future price talks with Intel.

By: DocMemory
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