"Motherboard makers: Intel Prescott not to be mainstream until mid-2005"

Despite Intel's aggressive price reduction on 90nm Prescott Pentium 4's, Taiwanese motherboard makers believe the Prescott chip will not hit mainstream until mid-2005.

In July Intel is planning to cut prices of the entry-level 2.80GHz Prescott (520). Other reductions will follow in August. Then Intel will cut prices of 130nm and 90nm processors.

Sources from Taiwan motherboard makers suggested that Intel’s aggressive pricing strategies are unlikely to move the 90nm P4 chips into the mainstream before mid-2005. The promotion of the Prescott chips is constrained by the new standards of PCI Express, and adoption of DDR2 memory, the sources explained. Sources from the motherboard makers further noted that the new production process and packaging methods will limit performance advancement.

Price of Intel desktop P4 chips (US$)
Serial number (90nm processed Prescott only)	Speed (GHz)	President quotation	July 18	August 22	% drop
570	3.8
560	3.6	637		417	34
550	3.4	417		278	33
540	3.2	278		218	21
530	3.0	218		178	18
520	2.8	178	163		8
	3.4E	417		278	34
	3.4	417		278	34
	3.2E	278		218	21
	3.2	278		218	21
	3.0E	218		178	18
	3.0	218		178	18
	3.06	218		178	18
	2.8E	178		178

Source: DigiTimes