"Intel to update desktop CPU lines in 3Q08"

Intel is planning to cut desktop CPU prices in the third quarter this year, along with the launch of more quad-core and dual-core models, according to sources at motherboard makers.

The performance-level Core 2 Quad Q9650 with a core frequency of 3GHz will launch priced at US$530 in thousand-unit tray quantities, while the Core 2 Quad Q9550 will drop around 40% from its original price of US$530 to US$316.

The Core 2 Quad 9450, currently priced at US$316, will be phased out of the market to be replaced by the Core 2 Quad 9400 at 2.66GHz and a price of US$266. The Core 2 Quad Q9300 and Q6700 will both be phased out at the same time too, leaving the Q6600 as the only 65nm quad-core CPU left in Intel's lineup, and which will drop from US$224 to US$203.

For dual-core CPUs, Intel will launch the Core 2 Duo E8600 at 3.33GHz and US$266, and will phase out the Core 2 Duo E8300. The company will also drop pricing for the Core 2 Duo E8500 and E8400 from US$266 and US$183 to US$183 and US$163, respectively.

Intel will also add the Core 2 Duo E7300 at 2.66GHz and US$133 to its entry-level line and to drop the price of its Core 2 Duo E7200 from US$133 to US$113.

With the updated pricing, motherboard makers and channel vendors both expect increased demand in the third quarter, with motherboard makers predicting an average sequential growth of 15% in third-quarter revenues.