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

To: carl a. mehr who wrote (72451)	1/29/1999 9:45:00 AM
From: John Koligman	Respond to of 186894

Intel to speed intro of faster Celeron... John ntel To Cut Celerons Again, Push Up 433 Launch (01/28/99, 4:14 p.m. ET) By Mark Harrington, Computer Retail Week Even as it prepares for the high-profile launch of the Pentium III, Intel continues to fortify a position at the low end by accelerating price drops on existing Celerons and pushing up the launch of a 433-MHz Celeron to March, sources said. Intel told computer manufacturers this week that the recently launched Celeron 400-MHz chip will drop to around $130 in quantities of 1,000 on Feb. 7. The new 366-MHz Celeron will drop to $90, while the 333-MHz Celeron will drop to $70 and the 300-MHz Celeron will drop to $60. The prices apply to the new, 370-pin versions of the Celeron, which use a socket form factor that includes 128 kilobytes of cache on the chip. The modular versions of Celeron, in so-called single-edge processor packages (SEPP), are priced at $140 for the 400-MHz, and $100 for the 366-MHz. Separately, a source said Santa Clara, Calif.-based Intel will introduce the 433-MHz Celeron on March 21, months ahead of a previously planned June launch date. It will be priced at $168 for the 370-pin socket version, and $175 for the SEPP. The March 21 date is expected to allay concerns that the launch of a new Celeron will detract from that of new Pentium IIIs, which are scheduled for Feb. 28. Intel has called the PIII launch the biggest in its history. A 450-MHz and 500-MHz are expected. A fall price sheet for the Celeron line did not project price cuts for any Celeron chips until April 11, when the 400-MHz was to drop to $185, the 366-MHz to $149, the 333-MHz to $105, and the 300-MHz to $95. At the January launch of the 366-MHz and 400-MHz Celerons, Intel acknowledged a dissatisfaction with its low-end retail market share for Celeron, and indicated a redoubled commitment to correcting it. "We certainly will move as aggressively as we can in that part of the market," an Intel spokesman said. "You will see higher speeds earlier than expected. And it's a safe assumption that anytime you see [a company] bring out newer parts earlier, it does affect pricing on the rest of the line." The moves this week are clearly aimed at correcting Intel's low-end woes. One PC maker welcomed the moves, saying his company will aggressively market Celerons. But at the same time, he noted the market continues to be driven by K6-2. He said he's using the Celeron as a differentiator, and said the price cuts will help reduce perceptions that it's priced higher than non-Intel chips.