Intel Corp., the world's biggest computer chip maker, cut the prices of some Pentium and Itanium processors by as much as 35% on Monday after inventory surged.
The Santa Clara, Calif.-based company said it had slashed the cost of 28 models for desktop and notebook computers and servers that run corporate networks.
Chief Financial Officer Andy Bryant said last month that the company would slow some factories and lower prices to work off inventory, which jumped 15% in the second quarter from the first. The moves will lower Intel's gross margin, he said. The margin, the percentage of sales after production costs, will be about 60% this year, 2 points less than he previously had predicted.
Intel lowered the price of the Pentium 4 560 desktop PC model to $417 from $637, according to its website. The company cut prices on five of its seven Itanium models for servers.
Shares of Intel rose 27 cents to $21.89 on Nasdaq.