June 13, 2007

Intel: No special pricing for China

Chipmaker says reports of pricing change sprung from a misunderstood announcement

Intel Corp. Wednesday dismissed reports it plans to change its pricing policy and set different prices for processors sold in China.

"That's not true," said Nancy Zhang, an Intel China spokeswoman in Beijing. The company's pricing policy remains unchanged, she said.

Intel generally sets standard prices for its processors with a list posted on its Web site. But those prices, for units of 1,000 chips, are not set in stone and do not cover all of the chips it sells. The actual prices that Intel charges for its chips can differ from one customer to another based on factors such as the quantity of chips purchased.

Zhang said reports of a pricing change in China stemmed from a misunderstanding over an announcement that Intel will use new packaging for boxed processors sold in China. Previously, Intel sold boxed processors in China with English-language packaging. Boxed processors are sold to consumers, generally to be used inside home-built PCs.

The new processor packaging, in Chinese, will be introduced on June 20 with boxed versions of the Pentium Dual-Core E2160 and E2140, which run at clock speeds of 1.8GHz and 1.6GHz, respectively. Both chips have 1M byte of on-chip cache.

Neither the E2160 or E2140 is listed on Intel's most recent price list. But the company's Web site lists boxed versions of the E2160 for sale in the U.S. at retail prices ranging from US$91 to $143.16. The E2140 is priced from $84 to $127.35.

Chinese pricing for these chips was not immediately available.

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