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November 17, 1997, Issue: 191
Section: News
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Industry superpowers set to drop two bombshells on computing world:As Compaq eyes K6, Intel sets cuts on PII
By Mark Harrington
Santa Clara, Calif.-As Compaq this month intimated a plan to begin incorporating Advanced Micro Devices' K6 microprocessors in its PCs, Intel last week disclosed a more aggressive ramp of Pentium II.
The timing of the two separate disclosures had some speculating that Compaq was pressuring Intel for price concessions. Indeed, some questioned AMD's ability to deliver to such a large OEM as Compaq in light of acknowledged K6 yield problems.
A Compaq spokesman called reports of new AMD-based Compaqs "speculation." But numerous sources briefed by Compaq said as many as four Presario notebooks and at least two consumer desktops would comprise a new retail line due out in December and January. Pricing on AMD desktops could start at $999 for a K6 233MHz. The company was quoted as saying a large percentage of its retail-oriented business could be K6 based.
Word of Compaq's plan preceded Intel's disclosure to OEMs last week of an unexpected price cut on its Pentium II 233MHz processor in January. Intel also said it will introduce Pentium II 350MHz and 400MHz chips in April, slightly ahead of expectations, sources said.
Intel, on Jan. 1, is expected to reduce the price of its Pentium II 233MHz to $263 from a current $395 (in 10,000-unit quantities), according to sources. The move would leave the Pentium MMX 233 priced at just $75 below a Pentium II 233MHz, making the former a more significantly more attractive.
One month later, on Feb. 1, Intel will cut the price of its Pentium II 266MHz to $370 from a current $520; and the Pentium II 300 MHz to $520 from a current $721, according to the sources. The Pentium II 333MHz processor will carry a $705 introductory price, while the Pentium II 350MHz will carry an $840 price, and the Pentium II 400MHz will carry a $980 price (all in 10,000-unit quantities). The Pentium II 333MHz will ship Feb. 1. The 350MHz and 400MHz will be built around a new motherboard design that incorporates a 100MHz system bus, increasing overall system performance. An Intel spokesman would only say, "Our goal is to bring Pentium II into the mainstream."
Copyright (c) 1997 CMP Media Inc. |
