To: Tony Viola who wrote (94344 ) 12/20/1999 9:54:00 AM From: Process Boy Read Replies (2) | Respond to of 186894
Intel Investors - ZDN vs. PIII 800zdnet.com Intel drops Pentium bomb on AMD Intel regains the speed lead as it ships 750MHz and 800MHz Pentium III chips. The 800MHz chip is a full two months early. By John G. Spooner, ZDNet News UPDATED December 20, 1999 5:51 AM PT Intel Corp. is stepping up its attack on Advanced Micro Devices Inc. in a battle that should ultimately benefit the consumer. The Santa Clara Calif. chip maker Monday rang the bell on the latest round with rival AMD, by announcing it is now shipping 750MHz and 800MHz Pentium III chips. The 750MHz Pentium III chip was expected in January. The 800MHz Pentium III, however, comes a full two months before it was originally expected. This, analysts say, is a response to mounting pressure from AMD (NYSE: AMD). The move, in fact, is the latest in a series of jabs between Intel and AMD, which began when AMD announced its Athlon processor at speeds of up to 650MHz in August. The boxing match will only benefit consumers, analyst say. And the winner will be ... "Pick your sides and cheer," said Mike Feibus, principle at market research firm Mercury Resources Inc. "The thing that no buyer wants to see, here, is a knockout punch. Instead, what they want to see is a long knockdown, drag out match." That's because as Intel (Nasdaq: INTC) and AMD battle it out, each company will push hard to be first with the fastest chip. The result will be that PC buyers get more power more quickly and, at the same time, prices on existing processors drop faster. Since August AMD and Intel have battled back and forth with faster chips. AMD beat Intel to 700MHz October and 750MHz in November. But Intel made it first to 733MHz and 800MHz. AMD, however, won't be far behind. The company will launch its 800MHz Athlon early in January, possibly at the Consumer Electronics Show. PC makers Compaq Computer Corp. and IBM are expected to support it. "We've been sampling customers to support a January launch with (PCs) available in January," said AMD spokesman Drew Prairie. "What you will likely see on Monday are some reviews posted on our 800MHz part." While the two companies have been fairly close in their introductions of new processors, Intel says it is about to step it up and offer new desktop Pentium III chips sooner than expected. "We have made a shift with this product line," said Jeff McCrea, director of marketing for Intel's Desktop Products Group. "The world is working on Internet time. We've decided to get (800MHz) into the market place as soon as possible. Because of this, "You're going to see Intel being much more aggressive in the future," he added. Limited quantitiesThe 800MHz Pentium III chip will be available in limited quantities at launch, while the 750MHz should be available in quantity, McCrea said. Supply issues with the company's 700MHz and 733MHz Pentium III chips are no longer present, McCrea added. PC makers said last week the 733MHz chip is now much more readily available than it was in late November. With both companies at 800MHz in January, the climb to 1,000MHz or 1GHz should happen fairly quickly. It's still up in the air who will get there first, but the first 1GHz announcement isn't that far off. AMD and Intel have both said they expect to have 1GHz chips in the second half of next year. "The way things are being pulled in ... there's no way it will be back to school. It will be sooner," Feibus said. Possibly as soon as June, he said. AMD would not comment on whether or not it is sampling 1GHz chips presently to large OEMs. Sources at the company it hasn't yet. But it should happen soon. AMD will demonstrate a 900MHz Athlon at the Consumer Electronics Show. "We will continue to build upon the success we've seen with Athon with future derivative products that keep us in the performance lead," the AMD spokesman said. For its part, Intel, plans to update the industry on its 1GHz Pentium III chip at February's IEEE International Solid-State Circuits Conference. The company also has plans to deliver a 1GHz and faster chip, code-named Willamette, in the second half of next year.