To: Uncle Frank who wrote (87311 ) 12/30/1998 10:32:00 AM From: Mohan Marette Read Replies (1) | Respond to of 176387
Intel quietly cuts Celeron prices Hi Uncle: Say talk about falling component prices. ======================================= By Michael Kanellos Staff Writer, CNET News.com December 29, 1998, 12:05 p.m. PT Intel ratcheted up its ongoing price war with Advanced Micro Devices by quietly cutting prices on its Celeron chips by roughly 30 percent this month and releasing a new, even cheaper version of the chip earlier than expected. The unscheduled, unannounced price cuts, which took place on December 6, mean that the fastest Celeron chips can be bought for between $85 and $105 in retail outlets today, or about $40 less than in November, according to dealers. And, while AMD did not officially respond with a price cut of its own, chip dealers note that the market has effectively lowered the price of K6-2 chips to close to the same level. The December price cuts will be followed by further cuts across Intel's Pentium II line as well as the rollout of new, faster Celeron chips in the first week of January, sources said..... The circumstances surrounding the stealth price cuts further indicate that a deeper battle is shaping up in the low-end computing segment. Despite the December discounts, retailers are selling Celeron processors for less than the official Intel wholesale price. Dealers have also said Celerons are in fairly ample supply, especially in comparison to hard-to-get Pentium IIs. Typically, wholesale-retail price imbalances, healthy supply, and soon-to-come chip releases mean more chip price cuts. More Celeron cuts could come next week with the other price drops. In turn, this would likely mean a wider variety of Celeron-based computers for $1,000 and less.......news.com