| |
<Picture: Download or request your FREE CDW catalog today>
<Picture>
March 25, 1997 10:45 AM ET
By millennium's end, Intel commits to increasing computing power
By Robert Lemos
ÿSAN JOSE, CALIF.--Amid stunning graphics and earth-shaking Dolby surround sound, Intel Corp. declared today that it will be delivering 10 times the performance of today's mainstream computers to the desktop of users in the year 2000. Most of the gains will be focused on next-generation graphics applications, such as PC-TV, digital videodisk players and real-time three-dimensional rendering.
The commitment was repeatedly voiced throughout a day devoted to Intel's Visual Computing Initiative, a blueprint for the next-generation graphics platform.
The PC microprocessor market's majordomo said it aims to offer a unified architecture to the fullest spectrum of users, as opposed to today's market, where specialized Unix systems and Apple Computer Inc. do very well.
"We are offering workstation power and mainstream affordability on a single architecture," said Albert Yu, senior vice president of the microprocessor products group for Intel, based in Santa Clara, Calif.
Although the predicted performance gains surpass the trend known within computer circles as Moore's Law, which states that computing power doubles every 18 to 24 months, much of the increase is based on removing the bottlenecks within Intel's basic architecture, and not on microprocessor improvements.
The company listed five areas that will be revamped: speedier processors, like the Pentium II; better graphics acceleration hardware; a new dedicated high-bandwidth bus, called the advanced graphics port, that will deliver four times the bandwidth of the current PCI bus; faster dynamic RAM; and I/O standards capable of higher data rates. All of these factors will band together to create a much faster and more efficient architecture.
As in the past, the mass of the entertainment market will keep new technology gravitating toward it. Yet, while several companies targeted the PC-TV consumer market as the next graphics gold mine, Intel's bandwidth-liberating presentations focused on the high-end server market, suggesting its next step will be out into the wings rather than bringing the spotlight to the audience.
"Our goal is to bring the best visual computing technologies to the Intel architecture," said Intel Vice President and General Manager Pat Gelsinger, in a prepared statement announcing a partnership between Intel and Avid Technology Inc. Avid is a major supplier of software tools for editing and creating information and education content in the film industry.
The partnership was sealed with Intel's purchase of 6.75 percent of Avid, at a total price of $14.75 million. Avid will be aggressively expanding its support for the Intel platform with a commitment of more manpower to develop applications for the Intel platform than any other competing platform.
By no means will Intel slow its foray into the consumer living room.
"We are in a battle for users' attention," declared Craig Barret, Intel CEO and president, in the keynote speech.
<Picture: Need a better remote access solution? Try our Free Product Selection Tool CD.>
<Picture>
March 25, 1997 10:45 AM ET
AMD will price K6 25 percent below Intel prices
By Lisa DiCarlo
ÿOn April 2, Advanced Micro Devices Inc. will find out just how close it can get to Intel Corp. pricing without shooting itself in the foot.
The chip maker will announce its K6 family, called K6-PRII, in 166MHz, 200MHz and 233MHz versions. While AMD will price the CPUs below comparable Intel parts, observers said the discounts may not be deep enough to entice PC makers into abandoning Intel.
In 1,000-unit quantities, a 166MHz K6 will be priced at about $210, a 200MHz chip at about $315 and a 233MHz part at about $450, said sources familiar with the pricing. The prices put AMD's processors at about 25 percent below Intel's Pentium Processors with MMX Technology, sources said.
"AMD is pricing the products with the same arrogance that Cyrix [Corp.] did when it rolled out the M1," said Ashok Kumar, analyst at Southcoast Capital Inc., in Austin, Texas.
Cyrix last year priced its then-new 6x86 at a premium and paid for it, as it was forced to fight a price war both with its manufacturing partner, IBM, and with Intel itself.
Kumar estimated that PC makers could save between $50 and $75 per PC by using an AMD processor--costs that could be passed on to customers--but that is not enough for top-tier PC makers to leave the Intel fold.
"We do not believe that the increased profit per seat that AMD offers is incentive enough for the Tier 1 OEMs," he said.
Despite the cost, however, at least one large PC maker, Hewlett-Packard Co., is nearing a deal with AMD to use the K6 in its small-business-oriented Vectra 500 line, sources close to the situation said.
The ballyhooed K6 line is a do-or-die product for AMD. The company is still smarting from its K5 debacle; that line of microprocessors was about six months late to market last year, and was given bargain-basement pricing to make up for lost time.
Because of AMD's huge fab capacity and projected positive yields, analysts give the K6 a good chance of success, but flawless execution is required.
"For them to attract big PC makers, they need to offer between 30 and 40 percent discounts over Intel parts," Kumar said.
AMD officials in Sunnyvale, Calif., could not be reached by press time. |
|
