Intel Monday cut the prices of some of its microprocessors, including that of its most expensive desktop Pentium 4 processor.

The 3.06 GHz version of Intel's Pentium 4 chip with a 533 MHz front-side bus was reduced from $589 to $401. The reduction of around one third makes the chip a little cheaper than Intel's newest Pentium 4 chip, which has a clock speed of 3 GHz and a faster 800 MHz front-side bus. That chip was launched last week, and becomes the most expensive desktop chip after the cuts.

The front side-bus connects the processor to the chipset. The speed jump from 533 MHz to 800 MHz provides users with increased performance, particularly when running demanding applications, according to tests by PC World.

Monday's price cuts also included reductions in Intel's Pentium 4M and Mobile Celeron range of notebook processors. The cuts follow the launch in early March of Intel's first processor designed specifically for notebook use, the Pentium M.

Prices of Pentium 4 M chips were cut by up to 38%, with the largest cut being for the 2.4 GHz version of the chip which was reduced to $348. Mobile Celeron processor prices were cut by up to 16%.

Intel also cut the price of its fastest Xeon processor. The 3.06 GHz version of the chip was reduced by 4% to $690.

The IDG News Service is a Network World affiliate.