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

To: Paul Engel who wrote (142013)	8/20/2001 1:37:14 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Posted? Intel To Formally Unveil 2 GHz Pentium 4 By Robyn Weisman, www.NewsFactor.com Intel Corp. (Nasdaq: INTC - news) will introduce its 2 GHz Pentium 4 processor next week, the latest salvo in its ongoing chip war with archrival Advanced Micro Devices Intel's official introduction and demonstration of the new processor will kick off its annual weeklong developers conference, which begins August 27th. Louis Burns, Intel's vice-president and general manager of the company's desktop products group, will act as the keynote speaker and officiate the press conference, in which several hardware and software manufacturers and developers will showcase systems and applications designed for the 2 GHz chip. Advantage: Intel Rob Enderle, vice-president and research fellow with Giga Information Group, told NewsFactor Network that Intel has always had the advantage over AMD, despite the fierce battling between the two competitors over the last several months. Intel has always been the larger player and is capable of driving a price war because of its larger economies of scale in producing processors, Enderle told NewsFactor. "It's as if Intel woke up and said 'We have to fight,' and using its sheer size, it is fighting aggressively to take market share and price advantage away from AMD." Earlier this month, prominent Lehman Brothers analyst Dan Niles predicted that Intel will slash the price of its 1.8 GHz Pentium 4 chip from US$562 to $260 on August 26th. He also predicted that the price of the company's next-fastest chip, which runs at 1.7 GHz, will fall from $352 to $193 on the same day. Prices and release dates for the 2 GHz version have not been announced by Intel. Bragging Rights Adding to the ongoing chip battle, IBM's recent announcement last week that it is no longer using AMD processors in its product line didn't help AMD, even though the announcement was not exactly breaking news, according to Enderle. "IBM made the announcement [about AMD] well after the fact, since it had gotten out of the retail business some time ago," Enderle said. "And IBM never used AMD in its corporate line to begin with." Enderle added that Intel's announcement and release of the new 2 GHz processor gives the company bragging rights, which it can use to its marketing advantage. Although clock speeds alone do not determine the overall speed of a given chip, "people understand clock speeds, and people buy on perceptions, not on the reality, which is a factor in Intel ramping its clock speeds," said Enderle. Longer Life Gartner Group analyst John Enck told NewsFactor that Intel sees its Pentium 4 chip as being much more competitive with AMD's product line than its current Pentium III model. "Intel sees [the Pentium 4] as having a longer life cycle," Enck told NewsFactor, adding that the company believes the processor's architecture will eventually allow for speeds as high as 10 GHz in the future. In addition, said Enck, actual Pentium 4 production is going much better than planned, enabling Intel to increase its speed bumps much earlier than originally anticipated. Giga analyst Enderle noted that Intel's 2 GHz model was originally scheduled to be released at the end of this year. Need for More Speed? Enck told NewsFactor that Intel fundamentally believes that, despite analysts' gloomy predictions about the global PC market, people will purchase computers as long as the industry offers a faster, better product. "What you'll see [at next week's conference] are more usage arguments that will demonstrate to [consumer and business customers] why they need the kind of performance" offered by Intel's fastest processors, Enck said. While Enck was not at liberty to divulge those specific usages before the start of the conference, Enck said Intel's demonstration will go far beyond digital video.