Intel will cut prices for its Pentium D 8xx and Celeron processors in January 2006, when its new 65nm dual-core CPU lines, the Pentium D9 and Pentium 4 6xx series, are expected to hit the market.

Unit prices of Intel's Celeron series will be lowered 5.5-13.6%, while price cuts on its Pentium D 8xx/6xx series, excluding the D840 will be small, indicated the sources. New prices for the Pentium D 840 will be lowered to US$423, down 20.1% from US$530 at present.

In addition, the sources hinted that Intel's new dual-core Pentium D and Pentium 4 6xx series processors, manufactured on a 65nm process, will be named as the Pentium D9xx series and Pentium 4 6x1, respectively.

The news come just one day after AMD's announcement that it will start volume production on a 65nm manufacturing process line at its Fab 36 in the middle of October.