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On April 22, Intel is slated to announce a 40 percent price cut on its current quad-core processors and significant drop on Core 2 Duos, channel sources said.

AMD has said it plans to launch its first quad-core processors, developed under the code name Barcelona, in mid-2007.

"There will be dramatic price drops on quad-cores, something AMD does not have, and dramatic price drops on Core 2 [Duo], an exciting processor that AMD has not had for two years. Advantage, Intel," said one system builder that works with both chip makers.

Another source familiar with the companies' plans said Intel plans price cuts on its Core 2 Duo E6300, E6400, E6420, E6000 and E6700 processors, and the reductions will range from 20 percent on the low end to 40 percent on the high end. There's also a 40 percent reduction planned for the Q6600 processor.

AMD on April 9 is expected to announce big discounts across its entire Athlon 64+ product line and its lower-end processors, several sources said. Some of the reductions will be as high as 30 percent, but like Intel, AMD is leaving some of its popular processors unaffected, such as the 4200+, sources said.