To: Joey Smith who wrote (61044 ) 7/24/1998 12:35:00 AM From: Paul Engel Read Replies (2) | Respond to of 186894
Joey & Intel Investors - July 26 it is ! Intel will introduce the 450 MHz Pentium II at a price of $655 ! On Sunday, no less! This is $124 cheaper than the ones advertised already on Pricewatch! How's that for rapid price cuts? Note - Intel is also making across the board cuts on existing CPU speed grades. Paul {==============================}news.com prices By Michael Kanellos Staff Writer, CNET NEWS.COM July 23, 1998, 6:10 p.m. PT A new round of chip price cuts from Intel is expected this Sunday, while the fastest Pentium II yet should hit the streets next month. The reductions will be the latest in this year's flurry of pricing activity by the industry's leading chipmaker. The July round would be the fourth desktop processor price cut in 1998, and at least two more are scheduled for September and October. In past years Intel has cut prices four times in the whole year. Meanwhile, Intel has moved forward the release dates on its low-cost Celeron processors twice. While Intel maintains the cuts and the shortened release dates stem from better-than-anticipated result in rolling out its most advanced commercial production process, referred to as the 0.25-micron process, various analysts have said that excess supplies of PCs and processors as well as slower demand have also conspired to drive down prices. In addition, Intel is trying to boost sales and win market share from Advanced Micro Devices, which has been rapidly gaining market share in the hot sub-$1,000 computing segment. An AMD spokeswoman stated that if Intel cuts prices, AMD can be expected to follow with cuts that will put their processors at 25 percent below equivalent Intel processors. The 450-MHz Pentium II will come out at a price of $655 in volume quantities, according to sources. The chip will follow the price cuts and appear in time for the "back to school" computer buying season, according to an Intel spokesman. Sources say that means a release in August. Some retailers are already booking advance sales for the chip at $779 in single-lot quantities. While this price will make the 450-MHz version the most expensive Pentium II,
it will cost less than earlier anticipated. In the spring, the 450-MHz chip was expected to debut for a price of $776, according to an analyst at Technology Business Research. Last month, the debut price was estimated at $669 by the consulting group. Prices listed nearby will be available to circuit board vendors and other wholesale purchasers. Price cuts could be lower for computer vendors, according to Ashok Kumar, an analyst at Piper Jaffray. The 450-MHz chip for instance, will probably sell for around $625 to computer vendors in large quantities, while the 400-MHz Pentium II will go for $550. Single-lot retail prices, of course, will be higher. Although cuts reduce revenue, the most recent round has stimulated demand. "The PC market picked up in June driven by Intel's price cuts and the release of Windows 98," Dan Niles, semiconductor analyst for BancAmerica Robertson Stephens said recently. Celeron prices are also being slashed in anticipation of two new Celerons containing integrated high-speed cache memory that are coming in August. After the price cuts, the older 300-MHz version of Celeron without cache memory will sell for $104, said Kumar, while the 266-MHz version will drop to $80. Intel is an investor in CNET: The Computer Network.