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To: P.Prazeres who wrote (4748)11/1/1996 9:46:00 PM
From: Philip Merryman   of 186894
 
Mr. Prazeres,

It appears from the Reuters article below that the Pentium Pro price cuts were planned in advance.

Philip Merryman

Intel cuts Pentium Pro prices

Reuters Story - November 01, 1996 17:33

FINANCIAL ELI ENT US DPR BUS INTC V%REUTER P%RTR

SAN FRANCISCO, Nov 1 (REUTER) - Intel Corp cut
prices Friday on its Pentium Pro, its most advanced line of
microprocessors, despite evidence of tightening supplies.

But prices of Pentiums, its mainstream microprocessors,
were left unchanged, under a price plan announced in August.

Intel traditionally cuts prices of its microprocessors four
times a year to propel sales.

Intel spokesman Howard High said the firm proceeded with
the planned cuts in the Pentium Pro line because it told
computer manufacturers about November price levels some time
ago.

"We share projected prices quite far in advance with our
customers so they can make their business plans. We kind of
have a commitment now," High said.

The price cuts are not as deep as they have been in the
past, he said.

High added that the supply tightening is not anything near
a shortage, but instead marked a lengthening of order advance
time from a "just in time" situation.

He said the supply situation also resulted from very strong
demand for high-end microprocessors.

Intel in August announced it would forego its November
price cuts on its mainstream Pentiums so it would not disrupt
the fall PC manufacturing and selling season. Price cuts often
incite manufacturers to hold off building PCs until they can
get the lower-priced parts.

Intel said the new price of 200-megahertz Pentium Pros
with 512 kilobits of cache, or memory, was $1035 per chip, down
from $1072, for orders of 1,000.

The price of 166-megahertz Pentium Pros with 512 kilobits
of cache was $627, down from $665.

For 200-megahertz Pentium Pros with 256 kilobits of cache,
the price fell to $525 from $562.

And 180-megahertz Pentium Pros with 256 kilobits of cache
now cost $428, compared with $482.
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