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Intel price axe swings again

Prepares for Christmas and fresh introductions

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Intel has once more taken the axe to its processor pricing, with cuts being made on selected procesors in the workstation, desktop and notebook computer range. The biggest price drop is on the old 266MHz mobile part, which drops by 34 per cent to $159 when bought in quantities of 1,000, but other chips fall by between eight and 30 per cent. Intel is maintaining its price on its high end 450MHz Pentium II part operating at the 100MHz bus speed, but has cut the 400MHz and 350MHz units to $482/1000 and $423/1000. For those parts using the 66MHz bus, the 333MHz Pentium II drops by 26 per cent to $234/1000, while the 300MHz PII falls by eight per cent to $192. The company has kept the price of its Celeron-Mendocino chips, introduced last month, steady. But it made a cut in the price of its old technology 300MHz Celeron chip to $95. This means that the “old Celerons” without the faster Mendocino core, are effectively at the end of the road. They have not had wide market acceptance. For the mobile chips it produces which come in the so-called “mini cartridge” form factor, Intel reduced prices on the 266MHz to $391/1000, a 12 per cent drop, while the 233MHz mini-cartridge falls further, by 20 per cent, to $209. The price cuts in Intel’s mobile chips indicates that the company intends to wean most of its larger customers to the mini-cartridge format as soon as it can. Intel has made numerous price cuts on its chips during the course of 1998. Formerly, it used to reduce prices every quarter, but now does so far more regularly. This latest price round is an indication that the market can expect further reductions and fresh introductions. The cuts are also aimed to take advantage of the Christmas market. ®

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