Intel Cuts Prices, Readies Faster PC Chips

The chip maker plans to release Pentium III processors running at 833MHz and 866MHz by the end of March, according to the source. Intel will launch a Pentium III chip running at 1GHz by the end of June, the source said. An Intel spokesman today declined to comment on the source's remarks.

Intel said recently that it plans to boost the speed of its desktop Pentium III processors to 900MHz or greater by the end of the second quarter of this year. However, the chip giant has told customers not to expect a 1GHz chip until the second half of the year.

The company is locked in a battle with Advanced Micro Devices Inc. (AMD) to offer the fastest desktop PC chip on the market. Intel's fastest Pentium III currently tops out at 800MHz, while AMD earlier this month released an 850MHz version of its Athlon chip. Clock speed is only one measure of a processor's performance, but along with price it's the feature consumers tend to pay closest attention to when shopping for a PC.

For sub-US$1,000 PCs, also at the end of next month, Intel expects to release Celeron processors running at 566MHz and 600MHz, up from today's 533MHz, the source said. For workstations and servers, Intel has said it will release Pentium III Xeons at 900MHz or greater by the end of the first half of the year.

Intel typically cuts prices on its current line of processors to make way for new offerings, and the price cuts, which took effect yesterday, may reflect such a move. An Intel spokesman declined to comment in detail on the company's future chip plans. On its Web site, Intel called the price cuts part of the company's typical pricing activity.

Intel's 800MHz Pentium III is now priced at $647, down 24 percent from $851. The 750MHz version dropped 29 percent to $530, down from $744. Other Pentium III processor prices were slashed from between 10 to 26 percent, according to information on the company's Web site.

On the Celeron side, the 533MHz version is now priced at $127, down 24 percent from $167. The 500MHz Celeron is priced at $93, down 27 percent from $128, while the 466MHz Celeron is priced at $73, down 18 percent from $89.

For workstations and servers, meanwhile, Intel cut the price on its three fastest Pentium III Xeon processors. The 800MHz version is now priced at $697, down 23 percent from $901. The 733MHz Xeon is priced at $505, down 22 percent from $644, while the 667MHz Xeon is priced at $425, down 15 percent from $644.

All prices are for 1,000-unit quantities. Prices of Intel's mobile chips weren't affected.

Separately today, Intel announced the e-Business Solution Provider Program, an initiative to work with Web integrators to help them develop systems for electronic commerce built around Intel-architecture-based computers.

Also today, InfoInterActive announced it has secured a US$6.9 million investment from Intel Capital, the chip maker's investment arm. Intel has licensed InfoInterActive's Call Manager and Flexline services for use with a family of Intel-branded Internet appliances that the chip maker has said it will launch later this year.

Intel also made an investment in Molecular OptoElectronics (MOEC), a provider of fiber-optic components, MOEC announced yesterday. Financial terms of the investment were not disclosed.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

PC World
Show Comments

Most Popular Reviews

Latest News Articles


PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?