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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (85853)	7/16/1999 9:45:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 186894

Intel to cut Pentium III prices over weekend By Michael Kanellos Staff Writer, CNET NEWS.COM July 16, 1999, 5:45 p.m. PT They're at it again. Intel will cut prices on the Pentium III line by 10 to 15 percent on Sunday, according to sources, even though low processor prices reduced the company's second-quarter profits and conspired to hand rival AMD a $163 million net loss. Next, the Santa Clara, California, chip giant will release a 600-MHz Pentium III on August 1 and then cut Xeon, Pentium II and III, and Celeron prices on August 22, the sources said. AMD, which released its new Athlon processor last month, can be expected to follow suit. The upcoming discounts could mark a new phase in the ongoing price war between the two companies. Currently, Intel and AMD contest ownership of the industry's lowest-cost processor for the budget PC market, with Intel's Celeron chip competing with AMD's K6-2 and K6-III lines. With the release of Athlon, however, AMD now has a chip that will compete in the performance PC segment. Analysts who have tested the chip and examined its architecture have nearly universally stated that the Athlon offers more performance than a Pentium III running at the same clock speed. Although released last month, Athlon (formerly known as the K7) won't appear in PCs or be available in quantities until August. The Pentium III price cuts essentially reduce the price gap between the products and prod AMD to make discounts. The Pentium III discounts coming over the weekend are steeper than earlier planned, according to sources. The new prices are as follows: The 550-MHz Pentium III will drop 10 percent from $723 to $646 while the 500-MHz version of the chip will go from $473 to $415. The 450-MHz Pentium III, meanwhile, will drop from $263 to $226. These are volume prices for wholesale purchases. Retail prices will vary depending on supply, the time of the month, and other factors. Some retailers, for instance, are currently selling versions of the Pentium III at lower prices than the "official" wholesale price. Prices also vary slightly depending upon the chip packaging. The 500-MHz version of Athlon currently sells for $324 while the 550-MHz and 600-MHz versions sell for, respectively, $479 and $699. Tight supply of Athlons, however, is creating something of a high ceiling price for the chip. Retailers are offering the 600-MHz version for $950, where available, while the 550-MHz and 500-MHz versions are being advertised for $720 and $488.