Intel has reduced prices on some of its Pentium processors by up to 40 per cent as part of its regularly scheduled price cuts.

Typically, chip price cuts are directly passed along to PC buyers. Intel's biggest price reductions applied to older chips. For instance, the 133-megahertz Pentium Mobile with MMX (for mobile computers with enhanced graphics) fell 40 per cent to $106; that would make laptops based on the chip about $70 cheaper.

The 200-MHz Pentium Mobile with MMX was cut 20 per cent to $423, a $107 reduction.