After AMD announced price cuts on its high and low-end chip lines yesterday, Intel has said they also plan to cut prices on its Celeron line although the changes won't become effective until next August 24th (detailed pricing), when a 2.7GHz Celery will make it to the market.
In the other hand, no price cuts are expected for P4s until the 4th quarter when next-generation "Prescott" processor will make its debut at 3.2GHz and 3.4GHz. Prescott features enlarged L1 and L2 caches, better HyperThreading and 13 new instructions.
Current Pentium 4s are enjoying of good sales, especially those units supporting 800MHz buses, Intel's own 865 chipset has proved very popular also (PAT hack anyone?).