To: Stoctrash who wrote (24570 ) 10/29/1997 5:25:00 PM From: John Rieman Respond to of 50808
Intel cuts prices..........................nando.net Intel to lower microchip prices up to 40 percent ------------------------------------------------------------------------ Copyright c 1997 Nando.net Copyright c 1997 Agence France-Presse Intel stock drops; denies share buyback rumor WASHINGTON (October 29, 1997 4:46 p.m. EST nando.net ) - Semiconductor giant Intel will lower the price of its microchips by 13 percent to 40 percent in a bid to boost sales of its latest chip, the Pentium II, the Wall Street Journal said Wednesday. The price drop, which will go into effect Nov. 1, will in most cases total 20 percent, a spokesman for the Santa Clara, Calif.-based company told the business daily. The company lowered its prices 30 percent to 50 percent in August in a bid to liquidate its inventory of Pentiums, an older model that Intel wants to replace with Pentium IIs and Pentiums with MMX multimedia technology. The most significant price drop will affect advanced models of the Pentium II, which Intel aims to impel manufacturers to install in computers with price tags below $2,000 in time for the winter holidays. The price of a 233 MHz Pentium II will fall 32 percent, from $530 to $401. The chip faces stiff competition from products by Intel rivals Cyrix and Advanced Micro Devices. Other microchips whose prices will drop sharply are older processors for portable computers. The price of the 200 MHz Pentium MMX, already widely used by computer makers, will only fall 15 percent, from $252 to $213. Intel, which revises its microchip prices each quarter, had previously thought it would not change them before the winter holidays. But the world's microchip leader has seen its growth slow, and recently warned that its fourth-quarter earnings could be equal to or lower than its third-quarter performance.