Intel preps faster Pentium, Celeron chips
By Brooke Crothers and Michael Kanellos
Staff Writers, CNET News.com
July 27, 1999, 11:10 a.m. PT
Intel's fastest Pentium III and Celeron chips yet are coming next week, ahead of the first computers based around the Athlon processor from Advanced Micro Devices.
In a ritual that seems to occur almost monthly now, PC makers will line up on Monday as Intel announces its latest and greatest processors. The top-of-the-line Pentium III will reach 600 MHz and the Celeron will hit 500 MHz.
New Pentium III computers should hit the market in the $1,800-$2,000 range, according to analysts, while the new Celeron chips will be targeted at the thriving sub-$1,000 segment. Intel will also cut prices on Celeron chips.
The following week the market should then see the first of the computers built around the Athlon--formerly K7--processor from AMD, according to sources.
IBM, Compaq Computer, Dell Computer, and Gateway, among others, are expected to announce models with the new Pentium III and Celeron chips, as well as new Athlon PCs.
IBM, for instance, will launch new Pentium III business desktops along with an Internet-based "e-support" program called "PC Lifecycle Care" which gives customers guidance on upgrades, according to sources familiar with the plan. Big Blue will also introduce new workstations based on the chip.
Gateway systems featuring the new chip should start at around $2,199 with a monitor and ISP service, while Compaq boxes should be priced around $1,799 with rebates, according to sources.
Intel's release of the 600-MHz Pentium III next week will allow them to retain the speed crown. Earlier this summer, Intel delayed the release of "Coppermine," an enhanced version of the Pentium III, until November. Coppermine was to be the first 600-MHz Intel chip. The "standard" 600-MHz Pentium III chip coming out next week was quickly added to the product line with the Coppermine delay.
"The consumer market, where Athlon will initially appear, seems largely driven by clock speed and price. So the fact that Intel has [the new Pentium III] will prevent the appearance that AMD has higher-performing products in the consumer segment," said Mike Feibus, a principal at Mercury Research.
"That's important for Intel going forward to prevent that perception from taking hold," he added. Athlon will run at speeds up to 600 MHz upon release, although analysts have questioned how many AMD can produce in the early months of the chip's life.
The 600-MHz Pentium III will also initially employ the 100-MHz system bus, which serves as a conduit between the processor and main memory. A faster 133-MHz bus, which will improve performance, for the chip and other Intel processors will appear in September. Athlon takes advantage a 200-MHz bus, while the Celeron will continue to use the slower 66-MHz system bus.
Price cuts loom
Intel earlier this month cut prices by 12 to 14 percent on the Pentium III line to make room for the new chip. New cuts on existing Pentium IIIs, therefore, won't occur on Sunday. However, Intel will impose price cuts on August 22. At that time, the 550-MHz Pentium III chip will drop to $658 from the $700 range now. The 500-MHz version will fall to $424 and the 450-MHz chip to $230.
The 600-MHz Pentium III is expected to hit the market at $669 in volume.
The 500-MHz Celeron will be priced at $167, and other Celeron chips will be cut in price the day it arrives. The 466-MHz version will drop from $147 to $114, while the 433-MHz chip will go from $113 to $93. The 400-MHz Celeron will be discounted from $93 to $73, and the 366-MHz and 333-MHz versions will stay roughly stable at, respectively, $69 and $67, according to sources. All prices are for volume purchases. Actual retail price will vary considerably depending upon supply.
The Pentium III has been fairly widely accepted in corporate accounts, among higher-end "performance" users, and in foreign retail outlets, said Paul Otellini, general manager of the Intel Architecture Business group.
Developers have also begun to increase their efforts in support of the chip. Currently, there are approximately 200 Web sites and applications optimized for the Pentium III. Five hundred are expected by the end of the year, said a spokesman.
Where Pentium III lags is in U.S. retail, where buyers have been drawn to super-cheap PC offers, Otellini admitted. Nonetheless, Celeron has been gaining ground in that segment.
Cheap PCs have also expanded the market a bit. "In the consumer space, there is some evidence that the $399 and $499 stuff is attracting more buyers than is the case historically," he said.
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