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To: jim kelley who wrote (86604)	12/22/1998 8:02:00 PM
From: Mohan Marette	Respond to of 176387

<Intel> To slash Celeron to Near K6-2 prices. Jim: You might be right,I hear over +50% sales in Nov consist of sub cheapie systems and you know who is the chief purveyor in the sub zero segment is. ================================= Breaking News Intel to Slash Celeron to Near-K6-2 Prices Mark Harrington Santa Clara, Calif. 11:57 AM EDT, Tues., Dec. 22, 1998 Intel told PC makers yesterday that it will slash the prices of new and existing Celeron chips to within a hairsbreadth of rival AMD's K6-2, according to a source briefed by the company. "The big news is that Intel is serious about Celeron because they're actually dropping the most popular processors in the line to at or below that of the K6," said the source. While AMD officials weren't available to discuss possible retaliatory moves, it has maintained a policy of pricing 25 percent below Intel, and accordingly, could cut prices below Intel's by January. Intel, as reported on CRWi last week, will introduce 366MHz and 400MHz Celerons on Jan. 4. Early introduction of the 400MHz Celeron represented an acceleration of Intel's timetable for the chip and suggested the company was becoming more serious about the low-end PC market, which is dominating sales this holiday season. According to the source, the price of the Celeron 400MHz chip will be between $150 and $160, depending on which form factor of the chip PC makers use for their motherboard designs. In a roadmap shown to CRW in November, the Celeron 400MHz was expected to be introduced at around $190. AMD's K6-2 400MHz chip is priced at around $154, the source noted. In addition, Intel will lower the new Celeron 366MHz to a new introductory price of between $120 and $130, a price on par with the AMD K6-2 366MHz introduced this fall. Intel's previously anticipated introductory price for the 366MHz was $162. Intel will also lower the Celeron 333MHz to a price ranging from $84 to $94, slightly above the $82 AMD charges for its equivalent chip. Previously planned pricing on the Celeron 333MHz was $124 (it's currently around $160). The Celeron 300MHz will drop on Jan. 4 to between $65 and $74, according to the source, noting AMD's K6-2 300MHz chip sells for around $72. All prices are for 1,000-unit quantities. The Celeron 300MHz currently sells for around $140, but was expected to drop to $93 on Jan. 4. An Intel spokesman, while declining to comment on specific pricing, did acknowledge the company plans to aggressively step up marketing for the Celeron early next year. "We're going to go after this market segment aggressively," he said. "We'll start 1999 with a new product line that will put us right back in the game at retail." PC Data, a Reston, Va.-based research company, yesterday reported that 58.5 percent of the retail market in November consisted of sub-$1,000 systems. The trend has pushed Intel rival AMD to a 37 percent share of the overall retail market for the month, while Intel controlled 46 percent, according to PC Data.