Intel To Cut Celerons Again, Push Up 433 Launch
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Intel To Cut Celerons
Again, Push Up 433 Launch
(01/28/99, 4:14 p.m. ET)
By Mark Harrington, Computer Retail Week
Even as it prepares for the high-profile
launch of the Pentium III, Intel continues to
fortify a position at the low end by
accelerating price drops on existing
Celerons and pushing up the launch of a
433-MHz Celeron to March, sources said.
Intel told computer manufacturers this
week that the recently launched Celeron
400-MHz chip will drop to around $130 in
quantities of 1,000 on Feb. 7. The new
366-MHz Celeron will drop to $90, while
the 333-MHz Celeron will drop to $70 and
the 300-MHz Celeron will drop to $60.
The prices apply to the new, 370-pin
versions of the Celeron, which use a
socket form factor that includes 128
kilobytes of cache on the chip. The
modular versions of Celeron, in so-called
single-edge processor packages (SEPP),
are priced at $140 for the 400-MHz, and
$100 for the 366-MHz.
Separately, a source said Santa Clara,
Calif.-based Intel will introduce the
433-MHz Celeron on March 21, months
ahead of a previously planned June launch
date. It will be priced at $168 for the
370-pin socket version, and $175 for the
SEPP.
The March 21 date is expected to allay
concerns that the launch of a new Celeron
will detract from that of new Pentium IIIs,
which are scheduled for Feb. 28. Intel has
called the PIII launch the biggest in its
history. A 450-MHz and 500-MHz are
expected.
A fall price sheet for the Celeron line did
not project price cuts for any Celeron
chips until April 11, when the 400-MHz
was to drop to $185, the 366-MHz to
$149, the 333-MHz to $105, and the
300-MHz to $95.
At the January launch of the 366-MHz and
400-MHz Celerons, Intel acknowledged a
dissatisfaction with its low-end retail
market share for Celeron, and indicated a
redoubled commitment to correcting it.
"We certainly will move as aggressively
as we can in that part of the market," an
Intel spokesman said. "You will see higher
speeds earlier than expected. And it's a
safe assumption that anytime you see [a
company] bring out newer parts earlier, it
does affect pricing on the rest of the line."
The moves this week are clearly aimed at
correcting Intel's low-end woes. One PC
maker welcomed the moves, saying his
company will aggressively market
Celerons. But at the same time, he noted
the market continues to be driven by K6-2.
He said he's using the Celeron as a
differentiator, and said the price cuts will
help reduce perceptions that it's priced
higher than non-Intel chips.
techweb.com
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I guess Intel is hoping PIII and Xeon sales will offset the Celeron price drops.
The article says Intel has a commitment to gaining marketshare back in the low-end of the market. They lowered prices more than expected in January, but I guess those didn't convince the consumer enough so Intel has to drop prices again, and earlier than expected. Also, the January price drops haven't fazed K6-2 sales at all, according to that PC maker.
AMD - The release of the K6-2 450MHz would be very helpful right now. |
