To: Paul Engel who wrote (74633 ) 2/26/1999 8:30:00 PM From: puborectalis Respond to of 186894
A service of Semiconductor Business News, CMP Media Inc. Story posted 3:15 p.m. EST/12:15 a.m. PST, 2/26/99 And now, it's the real Pentium III launch By Will Wade SANTA CLARA, Calif.--Intel Corp. today officially introduced its much-covered Pentium III in a bid to lock in its position as the dominant microprocessor vendor. Recognizing that the Internet is now one of the main PC drivers, Intel optimized the new chip for enhanced graphics, especially the three-dimensional images used over the World Wide Web. "The Pentium III processor enables the most powerful personal computers for running media rich in software, both on and off the Internet, in the home and in business," said Mike Aymar, vice president and director of Intel's platform launch operation. The chip has 70 new instructions all aimed to delivering better graphics capabilities, although rival Advanced Micro Devices Inc. has long stated that its own 3DNow! Technology is at least the equal of Intel's feature. The 3Dnow! Feature has been available for nine months. The marketing conflict between Intel and AMD has heated up this year, as Intel has attempted to regain control of the low-end PC market and maintain its position in the high-end market. AMD last year established itself as a major player in the basic PC space with its K6-2 devices, but has had difficulty keeping up with demand. The Pentium III is expected to compete directly against AMD's K6-III, which also made its debut this week (see Feb. 24 story). In 1,000-unit sales, the 500 MHz Pentium III is priced at $696, and the 450 MHz version is listed at $496. In the same volume, the 450 MHz K6-III is $476 and the $400 MHz device is $284. Analysts have suggested that Intel's pricing strategy is to garner its highest profits on devices that face no competition, as evidenced by the near-equal prices for both 450 MHz chips, and the significant increase for Intel's faster chips. Intel will also roll out a 550 MHz version next quarter, and while prices for that product have not been disclosed, observers expect it to be another profit-maker for the company. The Pentium III's reputation was tarnished even before Intel took off the wrapping because of its processor serial number feature. Privacy watchdog groups complained that the company's plans to embed a unique serial number in every chip would allow marketing groups to track individual users' movement on the Internet, and further erode personal privacy. Intel said the feature was aimed at providing additional security for online transactions. Problems increased this week, when a German publication issued a report stating that it had successfully hacked a Pentium III-based system and downloaded the serial number, despite Intel's software protections.