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To: Jeffrey McCannon who wrote (58105)	8/13/1998 3:20:00 PM
From: Diamond Jim	Respond to of 176387

"Corporate buyers want less expensive PC's" ++++++++++++++++ from: Austin American-Statesman, 13 August, page D8 Chip shortage crimps supply of low-cost corporate PCs Bloomberg News SANTA CLARA, Calif. -- Intel Corp. doesn't have enough of some of its more affordable processor, causing a shortage of cheap personal computers for corporate users. Computer dealers and distributors are reporting scant supply of PCs with 266 megahertz and 300Mhz Pentium II chips, blaming Intel's push toward faster and more profitable 333MHz, 350MHz and 400MHz processors. Hewlett-packard Co. and International Business Machines Corp. have the fewest of the cheap PCs in inventory, the dealers said. Intel is pushing top-of-the-line processors that cost more to help stem a decline in its earnings. The move comes as demand from corporate buyers for less-expensive PCs built with cheaper chips is picking up. "There are some spot shortages of Pentium IIs," said Intel spokesman Tom Waldrop. He said the shortages are temporary but declined to say which specific chips are in short supply. "We are working on increasing processor production. We expect supply to be tight until late this quarter." The shortage isn't having as steep an impact on consumer PCs because manufacturers use chips from rival chipmakers as well as Intel's newly introduced Celeron processor.