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

To: Ali Chen who wrote (46578)	1/28/1998 12:36:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Ali - Here's a low cost, sub $800 PC from Compaq that you will like. It will sport the Cacheless 266 MHz Pentium II! Maybe you can pick one up - if you start saving your money now. I guess Compaq wants a cheaper 266 MHz CPU than AMD's K6. Perhaps AMD should lower their prices - it isn't nice for AMD to gouge the public! Paul {========================} news.com Intel readies low-cost Pentium II By Michael Kanellos January 27, 1998, 6:15 p.m. PT Intel (INTC) is expected to release its Pentium II for sub-$1,000 consumer PCs in April, setting the stage for a raft of new home computers based on Intel's fastest chip architecture. The chip, code-named Covington, is a "cacheless" Pentium II processor, meaning that Intel has eliminated the extra, pricey memory currently built into Pentium II chips. One of the first vendors to adopt the chip will be Compaq. An Intel spokesperson confirmed the code name of the chip. Covington, which is due in April, will be the first of the low-cost Pentium IIs promised by Intel, according to John Joseph, semiconductor analyst with Montgomery Securities. To date, the Pentium II has been found only in mid-range and high-end PCs. Compaq will release a desktop PC using a Covington chip by early summer. The computer will contain a 4GB hard drive, 32MB of memory, and cost between $700 and $800, Joseph detailed. The chip will initially run at 266 MHz and be targeted at the "retail market," said industry sources familiar with the rollout. The chip will sell for approximately $100 to $115, said Joseph, about 70 percent less than the current cost of a 266-MHz Pentium II. Most of the cost reductions will be made by removing the onboard "level-2" cache memory on the chip. Although lacking this cache memory, Covington will continue to use the "Slot 1" architecture featured on other Pentium II chips. "We used to call it Pentium II junior," he said. "They reduced the price to bring the part down into the sub-$1,000 area." Actual manufacturing costs will be around $40 dollars, he added. Other Pentium II processors to be announced at that time include 350- and 400-MHz versions of the Deschutes processors, first introduced on Monday of this week. (See related story) Joseph further added that Pentium II demand has increased due to aggressive price cuts by the company. Late last year, demand for systems using the processor were both below his own expectations and likely Intel's, Joseph said. However, recent price cuts have stimulated sales. "Demand for Pentium II is really beginning to take off now that Intel has cut the price," he said.Computer vendors have also said that demand for the processor has ramped up in the past month.