Even as it prepares for the high-profile launch of the Pentium III, Intel continues to
fortify a position at the low end by accelerating price drops on existing Celerons and
pushing up the launch of a 433MHz Celeron to March, sources said. Intel told computer
manufacturers this week that the recently launched Celeron 400MHz chip will drop to around
$130 in quantities of 1,000 on Feb. 7. The new 366MHz Celeron will drop to $90, while the
333MHz Celeron will drop to $70 and the 300MHz Celeron will drop to $60.
The prices apply to the new, 370-pin versions of the Celeron, which use a socket form factor
that includes 128KB of cache on the chip. The modular versions of Celeron, in so-called
single-edge processor packages (SEPP), are priced at $140 for the 400MHz, and $100 for the
366MHz. Separately, a source said Intel will introduce the 433MHz Celeron on March 21, months
ahead of a previously planned June launch date. It will be priced at $168 for the 370-pin
socket version, and $175 for the SEPP.
The March 21 date is expected to allay concerns that launch of a new Celeron will detract
from that of new Pentium IIIs, which are scheduled for Feb. 28. Intel has called the P-III
launch the biggest in its history. A 450MHz and 500MHz are expected. A fall price sheet for
the Celeron line did not project price cuts for any Celeron chips until April 11, when the
400MHz was to drop to $185, the 366MHz to $149, the 333MHz to $105 and the 300MHz to $95.
At the January launch of the 366MHz and 400MHz Celerons, Intel acknowledged a dissatisfaction
with its low-end retail market share for Celeron, and indicated a redoubled commitment to
correcting it. An Intel spokesman would only say, "We certainly will move as aggressively as
we can in that part of the market. You will see higher speeds earlier than expected. And it's
a safe assumption that anytime you see [a company] bring out newer parts earlier, it does
affect pricing on the rest of the line."
The moves this week are clearly aimed at correcting Intel's low-end woes. One PC maker
welcomed the moves, saying his company will aggressively market Celerons. But at the same
time, he noted the market continues to be driven by K6-2. He said he's using the Celeron as a
differentiator, and said the price cuts will help reduce perceptions that it's priced higher
than non-Intel chips.
