Intel Core 2 Quad, Xeon Price Cut by 50 Percent

Intel announced on Sunday that it has reduced its price on a number of processors, by up to 50 percent, in an effort to clear out 65nm inventory.

The Intel Core 2 Quad Q6700 (2.66 GHz) has been reduced to $266, down from $530. Likewise, the Intel Xeon X3230 (2.66 GHz) was also reduced down to $266. The Intel Core 2 Duo E6850 was also cut from $266 to $183. Intel’s Celeron 430 dropped down to $34.

“We’re transitioning from 65nm to 45nm,” said Patrick Ward, a spokesman for Intel. “We’re in the process of refreshing our line. If you see a 65nm, it’s older technology and we’re moving on from it.”

The chip maker has been crowned in the industry from both high-end and low-end products while remaining competitive with AMD. Intel’s latest move to reduce prices of some of its top selling CPUs is also adding pressure to AMD, which is finding it difficult to compete.

AMD announced on Friday that it will ship its first 45nm processors in the fourth quarter. The company will still be about a year behind Intel’s technology when those CPUs are shipped.