Intel Prepares 300-MHz Chip

PRNewswire
MANHASSET, N.Y.
Apr 18, 1997

Intel (NASDAQ: INTC) is readying a 300-MHz microprocessor, which will be launched early next month, industry sources told CMP's Computer Reseller News Online (http://www.crn.com/).

Intel plans to roll out its first Pentium II microprocessors with internal clock speeds of 233 MHz, 266 MHz and 300MHz on May 7.

The pricing of the 300-MHz Pentium II already has been set, industry sources said.

The chip's price in the channel will be $1,980, a level where it will remain until a scheduled price reduction in November. At that time, the chip's price will drop to $1870, according to the sources.

Intel plans to position Pentium II so that over time it will be considered the best chip for use in desktop machines, a kind of super-successor to today's mass market Pentium chips. Intel's other high-end chip, Pentium Pro, will continue to be used in powerful workstations and servers, eventually narrowing its market to high-end servers, according to Computer Reseller News Online.

Pentium II's predetermined role as a desktop processor is inherent in its design, according to sources. The processor only scales to two processors in a server, compared to Pentium Pro chips, which may scale to four processors, and more, because individual systems may be linked together. Pentium II's new mounting technology, incorporating a cartridge design, requires that they be placed at least six apart on a motherboard, taking up valuable space.

Intel is coupling its new product introductions with an aggressive pricing strategy. The company plans relentless microprocessor price cuts of its older chips over the next several months, with planned reductions up to 75 percent.

The first round of those cuts will begin next week (April 28), when the Santa Clara, Calif.-chip maker announces its scheduled second quarter price reductions, according to OEM and channel sources.

Second quarter pricing includes drastic cuts to Intel's older chip models, such as the 200 megahertz Pentium, which will drop 48 percent to $257. The chip's price will fall further to $150 in August and to $123 in November, representing a free-fall of 75 percent in ten months. Just a few months ago, a 200-megahertz Pentium was considered a high-end desktop processor that was in short supply.

Intel faces increasing competition. Advanced Micro Devices Inc., Sunnyvale, Calif., earlier this month unveiled three versions of its new K-6 chip with clock speeds of 166 megahertz, 200 megahertz and 233 megahertz. The chips incorporate Intel Corp.'s MMX technology, which improves multimedia performance. Apple Computer Inc. this month unveiled a 300 megahertz PowerMac system. Cyrix Corp., Richardson, Texas, plans to launch in June a new high-end PC microprocessor.

Published by CMP Media Inc., Computer Reseller News has a circulation of more than 115,000 and reaches influential readers from Wall Street to Silicon Valley with the product trends and industry news needed to sell comprehensive technology solutions.

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-0- 04/18/97

SOURCE: CMP Media, Inc.

CONTACT: Steve Rubel of CMP Corporate Communications, 516-562-7434, or
srubel@cmp.com; or Steve Burke, Editor of CRN Online, 617-487-7521, or
sburke@cmp.com