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Celeron price pressure squeezing smaller firm

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AMD, Intel's chief competitor in the fight for microprocessor share, said yesterday it would post a loss in its first quarter because of price slashing by the Goliath. The company's shares fell by a further $2 on news from its CEO Jerry Sanders that price competition was beginning to hurt. Intel has reacted to AMD's victories in the low end by introducing faster Celeron processors and slashing prices on its existing model. There are a further series of price cuts all through the first quarter of this year. The battle is getting tougher as AMD rushes out its Sharptooth K6-3 and Intel responds by introducing its Pentium III (Katmai). Although AMD is hurting, last year it claimed it would reach a point in 1999 where it could resist Intel price pressure. The Federal Trade Commission (FTC), which starts a trial against Intel in March, may be interested in whether the Goliath is using its vast financial resources to batter its smaller competitor into submission. ®

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