Intel Corp., world's largest chip maker, announced price cuts for its Pentium M mobile chips and for its Centrino mobile technology package, which consists of Intel's productive Pentium M microprocessor, a specialized chipset for notebook computers, and integrated Wi-Fi access, on Sunday.

The new prices are as follows: Pentium M 755 with 2MB of L2 cache and clock speed at 2.0GHz will $423 as opposed to its previous price of $637. This shows an approximate reduction of 34 percent in high-end CPU prices. The Pentium M 745 with clock speed at 1.8GHz will be reduced from $423 to $294 - a price cut of almost 44 percent.

Intel's Centrino packages also noted a drop of 30 percent in prices with Pentium M 755 based systems dropping to $695 from $706.

Industry analysts predict that Intel may be planning to launch another mobile microprocessor, which is why the chip maker has decided to make such drastic changes to its price model. They believe that Intel is repeating the history and possibly following on the same path as its does everytime before unveiling a major, high-end chip.

It is also being reported that Intel is trying to gain as much market shares as possible in the mobile market without much fear from its arch-rival, Advanced Micro Devices (AMD), who has taken much control of the desktop chip market by announcing their 64-bit Athlon64 microprocessors last Sept. at Computex, Taipei, one of the largest technology trade shows in the world.