SteveC,
re: launch:1GHz PCs -- fast, but certainly not cheap
By John G. Spooner, ZDNet News
While Intel and AMD are in a mad dash to the finish line with 1GHz processors, due late this month, consumers are asking, where can I get 'em ... and how much? The answer: Bring some dough.
While Intel Corp. and Advanced Micro Devices Inc. (NYSE:AMD - news) are sprinting toward the finish line in a mad race to see who can be first with a 1GHz -- or 1,000MHz -- processor for desktop PCs, consumers are thinking: What's in it for me?
Or, in other words: Where can I buy a 1-gig machine? And for how much?
Sources say the two companies will both ship their 1GHz chips by the end of this month, and for the consumer this will mean more-powerful, lower-priced chips for midrange PCs.
As higher-clock-speed processors are introduced, chip makers reduce the price of the speediest chips they're currently manufacturing. This allows consumers to purchase more megahertz for their dollar.
Consumer benefit: Faster, soonerConsumers seeking a faster machine will benefit from competition between Intel and AMD because they will be able to purchase their 1GHz PCs much sooner than originally expected. Previously, 1GHz chips were not expected until the second half of this year.
It is expected that major PC makers Dell Computer Corp. (Nasdaq:DELL - news) and Hewlett-Packard Co. (NYSE:HWP - news) will begin shipping 1GHz Pentium III-based PCs by the end of the month. AMD sources said the Sunnyvale, Calif., company will be shipping a 1GHz Athlon chip before the end of the month as well.
Furthermore, 1GHz Athlon PCs from brand-name OEMs should be available at the same time, they said. That means AMD stalwarts Compaq Computer Corp. (NYSE:CPQ - news) and Gateway Inc. (NYSE:GTW - news) should be shipping 1GHz Athlon-based PCs in the same time frame.
Upward of $4,000These new PCs won't be cheap, though. Analysts predict the 1GHz chips will carry an initial premium over this week's most expensive processors.
AMD's top-rated 850MHz Athlon, for example, costs about $850 in 1,000-unit quantities. But the new 1GHz chips from AMD and Intel will cost about $1,000 at introduction, analysts say.
While those prices will come down as the chip becomes readily available, the initial high cost will translate into Pentium III-based PCs costing upward of $4,000 when including the cost of a monitor.
A source close to Dell said to expect its gigahertz Dimension to cost up to $4,000 or possibly more.
That PC will likely be fitted with Rambus memory (Rambus Dynamic RAM), which, right now, costs more than twice as much as the synchronous dynamic RAM used by Athlon systems.
Strong sales expectedDespite their initial cost, analysts predict 1GHz PCs will sell well.
"There's no denying that 1GHz will be a pretty compelling marketing button," said Mike Feibus, principal analyst at Mercury Research.
But that's only if people can get their hands on a system. Supplies of 1GHz Pentium III chips from Intel will, the company readily admits, be short at first.
Intel says it will have "limited" supply of gigahertz Pentium IIIs out in the second quarter, with volume coming in the third quarter.
"We will target 1GHz in the first half to people that can really appreciate it, such as PC enthusiasts, such as high-end gamers," said Intel spokesman George Alfs last week. "It really will be limited volume in Q2."
This means PC makers that cater to those market segments will likely see the gigahertz chip first.
While 1GHz Pentium IIIs will be available in systems, they may not be available in other ways, such as in the reseller channel as boxed processors, Alfs also said last week.
Can demand be met?It is not clear how many processors AMD or Intel will need to satisfy demand for the faster PCs.
Short supplies of the 1GHz Pentium III, in a case similar to the 800MHz Pentium III, will surely frustrate some consumers. AMD, sources said, intends to launch with enough capacity to satisfy the demands of its OEMs.
However, analysts say the higher initial pricing on some 1GHz PCs may limit demand.
"My guess is that pricing will take care of that until there is greater supply," Feibus said.
PC makers lining up"We're supporting 1GHz Pentium III," said a Hewlett-Packard Co. spokeswoman on Thursday. "We will be shipping consumer models (in HP's Pavilion line of PCs) starting later this month ... and most likely shipping corporate (desktop PC) models in June."
"We are going to have a (Dimension) product," a Dell spokesman said. However, "We don't have a date yet." While dates are not final, it is likely that Dell will have its 1GHz Pentium III-based Dimension PC by the end of the month as well.
For AMD, the run to 1GHz will be instantaneous. Sources say AMD's 900MHz and 950MHz Athlon chips will be announced at the same time as the 1GHz Athlon.
Four chips at onceMeanwhile, sources said Intel is planning to announce its 850MHz and 866MHz Pentium III chip in the latter half of this month.
It is unclear exactly how the company will handle its announcements -- including its forthcoming 933MHz Pentium III introduction. However, sources say it is possible the four chips will be announced on or about the same time.
Intel officials, however, refused to comment on specific launch dates.
When asked, they reiterated a commitment to launch the 1GHz Pentium III shortly. |
