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

To: Paul Engel who wrote (152943)	12/20/2001 9:46:52 PM
From: Dan3	Read Replies (3) \| Respond to of 186894

PENTIUM PRICES PLUMMET AS GLUT HITS MARKET Intel's aim this year to ramp up production of the Pentium has resulted in a glut and led to massive price cuts over the last month. At the beginning of July, a 60MHz Pentium cost $675 per unit but on the 1 August its price will be $418, with further cuts expected as Intel attempts to shift stocks. The price of the 60MHz is eventually expected to fall to $400 or perhaps lower as Intel prepares to start a worldwide advertising campaign to promote the use of the processor. Cuts on the 90MHz and the 100MHz are expected too. The 90MHz processor will cost around $600 at the beginning of next year while eventually the 486DX4 is expected to replace the currently popular DX2, according to Intel insiders. The price slashes mean better deals for PC buyers. Gateway 200 and Dell have already started a price war which has resulted in large cuts on their 60MHz systems. Compaq, according to an insider, is attempting to stay aloof from the fray but will inevitably be drawn in. Both Compaq and AST have the advantage that they second source processors, in Compaq's case Advanced Micro Devices (AMD) and in AST's case Cyrix chips. This makes Compaq less vulnerable to price war pressure. Meanwhile AMD is expected to introduce 80MHz and 100MHz versions of its 486 chip in early Autumn. Rumours that takeup of the Pentium processor is slack are consistently denied by Intel but the company acknowledges that so far public perception of the chip is low -- hence the huge advertising spend. While the advertising campaign is primarily intended to promote the Pentium processor, Intel is also interested in damaging the credibility of the PowerPC processor as far as possible. 194.159.40.109 Plus ca change...