On PII pricing:
PII cuts to shave Xmas PC prices
Tue, 14 Oct 1997 11:01:49 GMT - Arif Mohamed
Intel is expected to cut Pentium II and other processor prices on October 26, knocking up to seven per cent off the price of Christmas systems.
According to sources, Intel will cut the price of the 233MHz Pentium II from $505 to $382; the 266MHz Pentium II from $637 to $505; the 300MHz PII from
$810 to $703; and 233MHz Pentium MMX from $386 to around $280. All prices are for 1,000 unit volumes. The chip price cuts are expected to kick in after
November and knock between five and seven per cent off the price of a PC.
For example, a œ1,750 + VAT 233MHz Pentium II-based system will now cost roughly œ1,625 + VAT: a drop of around seven per cent.
Rival AMD said Intel isn't in the habit of making huge price reductions: "Intel's business model has been designed for extreme profitability. If they cut prices [too
sharply], they would dramatically affect that. We think it is highly unlikely they would do that." said AMD's VP of marketing Dana Krelle, in a recent interview.
"The new 300MHz Pentium II price is higher than I expected," commented a source familiar with Intel's plans.
AMD recently reduced the price of its AMD-K6/233 processor to $290, making it $92 cheaper than the Intel's equivalent 233MHz Pentium II chip under the
November pricing scheme. AMD said it intended to continue undercutting Intel on price, and Cyrix is also expected to remain price competitive.
Cyrix was currently unavailable for comment.
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