Henry, Article...Intel slashes price of 333-MHz Pentium II...
By Reuters
Special to CNET NEWS.COM
March 19, 1998, 7:20 p.m. PT
just in Intel (INTC) cut the price on the fastest version of its Pentium II processor by 19 percent, to stimulate demand at the high end of the PC market.
Intel said it reduced the price of a 333-MHz Pentium II processor to $583 from $722 per processor, when purchased in quantities of 1,000. The price action comes less than two months after the top-of-the-line chip debuted.
The Santa Clara, California, chipmaking giant is enjoying very strong production volumes on the chip, manufactured according to the advanced 0.25 micron process, according to a company spokesman. The rest of Intel's processors are manufactured on 0.35 micron process technology, but the company is changing all of its manufacturing over to the more advanced process, which creates a finer linewidth and allows for more transistors per chip.
Besides the strong yield, Intel is now cutting processor prices more frequently, the spokesman said. Previously, it had been cutting prices about once a quarter, but as computer makers are managing their inventory more tightly and as Intel designs more chips for different market segments, prices cuts will occur more frequently.
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