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From...
Intel slashes prices on Pentium, Celeron chips
September 16, 1998
Web posted at: 3:00 PM EDT
by Cheri Paquet
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(IDG) -- Intel on Monday announced up to 34 percent price reductions on volume purchases of its Pentium and Celeron microprocessors for desktop and mobile PCs.
The Intel Pentium II with 512K cache now costs $482 for the 400MHz version, down from $589; $299 for the 350MHz version, down from $423; $234 for the 333MHz version, down from $316 and $192 for the 300MHz version, down from $209.
Intel's 300MHz version of its Celeron processor, designed for inexpensive desktop systems, now costs $95, down from $112, a 15 percent reduction.
The Pentium II mobile processor with 512K cache, now costs $391 for the 266MHz version, down from $444; the 233MHz version is priced at $209, down from $262. The mobile Pentium 266MHz with MMX technology now costs $159, down from $241, and the 233MHz version of this processor now costs $95, down from $134.
Today's price cuts are part of Intel's strategy to segment the market into basic PCs, performance PCs, servers and workstations and mobile PCs, according to company spokesman Robert Manetta. This year Intel has made a smooth transition to new technology using 0.25 micron process technology, which leads to faster processors at lower price, he said.
Intel rival Advanced Micro Devices (AMD) responded to today's announcement by reaffirming its commitment to deliver comparable microprocessors to the Pentium II at 25 percent lower cost. The AMD-K6-2 processor meets the Pentium II in performance on mainstream applications, said company spokesman Dale Weisman. It offers additional 3D Now graphics processing technology not available for the Pentium II, he added.