World’s largest chip manufacturer, Intel has slashed the processor prices. Market slump and cheaper processors by Advanced Micro Devices has forced the company to reduce the prices by as much as 48 percent.

The revised price of Intel's Core 2 Quad Q9650 processors is 40% less now at US$316. 16 to 20 percent decrease was witnessed in the other Core 2 Quad chip prices. These chips are used in high-end desktops like gaming systems.

However, Intel has maintained the prices of its three most expensive desktop chips. Intel was not immediately available for comment.

Intel expects that there could be reversal of the prices by the second half of 2009. However the company does not want to divulge the details about its quarterly forecasts.

But Intel has good news among the grim ones. The company has introduced three power-efficient quad-core chips - the Core 2 Quad Q9550s, Core 2 Quad Q9400s and Core 2 Quad Q8200s processors. The company has lost significant market share to AMD and the latest price reduction is seen as a step towards increasing sales, markets experts believe.