Following its recent P4 price cuts, Intel has quietly cut prices on its entire family of desktop Celeron processors, as well as on some of its PIII chips for desktop and notebook computers.

Intel's Celeron chips are aimed at entry-level PCs. The price of its fastest Celeron, an 850MHz chip, was cut by 38 percent to $86. The price of the 800MHz part was cut by 20 percent, to $74. Prices are per chip for 1,000 unit quantities. There should be a knock-on effect with PCs using Celerons falling in price to some extent. Buyers should watch PC makers carefully to make sure the savings are passed on.

The three slowest Celeron processors, which run at 667MHz, 700MHz and 733MHz, were all reduced to $64. Intel typically does this when it wants to phase out older chips and keep its chip line-up lean, analysts have said. PC makers have little incentive to buy the 667MHz part when they can get a faster chip for the same price.

Intel has also cut the price of its two fastest PIIIchips. The 1GHz dropped 14 percent to $193, and the 933MHz version is down five percent to $183.

The chip maker also cut the prices of some of its Mobile PIII chips including the 1GHz, reduced by 12 percent to $637, and the 900MHz, down 17 percent to $423.

Finally, Intel cut the price of its 700MHz low-voltage PIII processor by 24 percent, to $241. The 600MHz version of that chip was reduced in price by 18 percent, to $198.

P4 and PIII Xeon prices remain unchanged.

Yesterday Intel lifted the lid on its new Itanium processor, a 64bit chip for use in high-end servers and workstations.