Intel Launching Pentium III With A Bang
Despite the marketing muscle behind Intel's Pentium III launch next week, retailers and
analysts are questioning whether the processor's new multimedia instruction sets can boost
the average selling prices of PCs. Gary Richman, Intel's U.S. retail marketing manager, said
the company will spend $300 million on worldwide promotions. Intel will increase its in-store
training staff and hold special events for sales associates to attract attention. The Santa
Clara, Calif., chip giant also will provide live Internet connections to its top accounts to
demonstrate the first 450-MHz and 500-MHz PIII PCs.
Intel is expected on Wednesday to show some of the first software titles optimized for the
PIII. According to an Intel spokesman, approximately 100 applications, from games to
productivity titles, will ship by year's end and several "big names" are developing optimized
sites that work exclusively with PIII chips. Meanwhile, Intel recently slashed the OEM prices
of its low-end Celeron processors. The cuts prompted rival Advanced Micro Devices to do the
same, starting a price war that pushed mainstream processors to historic lows. A 400-MHz CPU
costs $133 from AMD and $134 from Intel, in quantities of 1,000; a 333-MHz chip costs $72
from AMD and $73 from Intel.
"Sales of sub-$1,000 PCs have been 40 percent of sell-through, but clearly, that is going to
increase," said Ashok Kumar, an analyst for Piper Jaffray, in Minneapolis. The falling CPU
prices make possible a viable business model wherein sub-$500 PCs are sold at a loss with
Internet connections or other services, Kumar said. David Feathers, marketing manager for
Alpha Computers, in Tigard, Ore., said the competition between AMD and Intel isn't the only
factor affecting prices. "People are starting to realize the best buys in the industry are
systems based on chips that are almost on their way out," he said. "The bulk of the interest
isn't fast processors -- it's on how much computing people can get for their $800 or $1,200."
Many consumers, he said, aren't buying a PC to get the best *** performance or for other
multimedia applications. They are interested in the Internet, running light productivity
applications, and perhaps playing a few games. Today's 400-MHz Celeron system, priced less
than $1,000, have more power than some users even need. Feathers said business customers and
those looking for specific computing needs, such as a video-editing package or a multimedia
*** system, are the easiest to step up to a high-end PC. Yet many industry experts said
they believe it's a dearth of compelling technologies that makes high-end systems hard to
sell to mainstream consumers. "There aren't as many applications that force people to go to
the very high end like they used to," said a store manager at a consumer-electronics chain.
Intel is working to entice mass audiences toward higher-margin, higher-performance systems.
Many observers said they wonder how successful PIII will be, given the new, high-end
processor has a Pentium II core.
"There is always a market for the high end," said Bill Bryant, general manager of Datel
Systems, in San Diego. Business customers will probably standardize on the PIII as Intel
phases out the PII parts, he said, but "the sweet spot is still $1,200." Retailers can expect
the new instruction sets will take center stage as AMD and Intel continue to battle for
*** in the consumer market. Dave Sheffler, AMD's vice president of sales and marketing
for the Americas, said his company will promote 3DNow in all its processors, while Intel
offers its new instruction sets only in the PIII.
"We will take advantage of the fact that we will be delivering the same [kinds] of
instruction sets for the mainstream," he said. An AMD spokesman said 41 titles are optimized
for 3DNow. More announcements are expected this week. The K6III will ship in 450-MHz and 500-
MHz versions. Retailers will start receiving PCs based on the K6III in limited quantities at
the end of this quarter. The chips will have integrated Level 2 cache, much like Intel's
current Celeron design. For added performance, the chips can support additional cache on the
motherboard, which will be designated as L3 cache.
Source
I thought P-II's have integraded L2 while Celerons have on-die L2
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additional >cache on the motherboard, which will be designated as L3 cache.
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<Big Snip>
The reason Intel will not win this battle with the current celerons, is
because it's a disabled chip!
The AMD isn't disabled.
SO what if Intel sell's their Celeron for the same price as AMD's
equivalent chip.
Intel need to put their "regular" Pentium II & III chips in the price
range to compete with AMD, and then come out with an enhanced chip for
the higher end machines...
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Jim Dompier
http://www.islandshades.com
Quoted text (9 lines)
>> Intel Launching Pentium III With A Bang >> Despite the marketing muscle behind Intel's Pentium III launch next week, retailers and >> analysts are questioning whether the processor's new multimedia instruction sets can boost >> the average selling prices of PCs. Gary Richman, Intel's U.S. retail marketing manager, said > <Big Snip> > The reason Intel will not win this battle with the current celerons, is > because it's a disabled chip! > The AMD isn't disabled.>The reason Intel will not win this battle with the current celerons, is
>because it's a disabled chip!
>The AMD isn't disabled.
Jim, you are yet another dumb or simply ignorant victim of Intel's
marketing. Yes, Intel wants you to believe that in every respect a PII
design and performance is superior to that of the 'Budget Home Computer'
Mendocino (those with 128kb of integrated cache) Celerons. Intel profits
upon their 'high end' and high margin Pentium II's, while losing money, but
hardly market share on every Celeron it produces.
Go and return under your rock or listen and learn.. Absorb the facts.
--Robin Payne
