The Santa Clara, California - based chipmaker will come out with a 2.8GHz Pentium 4 for desktops later this quarter, and a 3GHz Pentium 4 in time for the holiday buying season, said sources close to the company. Earlier, the company said it would come out with a 3GHz Pentium 4 in the fourth quarter. Intel will also accelerate price cuts on older chips to make way for the faster Pentium 4 lineup, analysts said.

According to Salomon Smith Barney analyst Jonathan Joseph, Intel will cut prices on its fastest Pentium 4 2.53 GHz chips by 63 percent when the faster chips launch. Cuts for Intel's Pentium 4, 1.8 GHz chip will be roughly 13 percent. Intel will also move up Pentium 4 price cuts to Sept. 1 from the previously planned Oct. 27, said Joseph. Source: ZDNet