Posted on: Tuesday, August 28, 2001
Intel launches its fastest Pentium chip
By Matthew Fordahl
Associated Press
SAN JOSE, Calif. — Intel Corp. launched its fastest Pentium 4 processor to date yesterday and slashed prices on older models to help spur demand in the weak economy.
The new Pentium 4 is the first microprocessor to hit 2 gigahertz, or 2 billion cycles per second. Available immediately, it sells for $562 when purchased in quantities of 1,000.
Several computer manufacturers, including Dell, Hewlett-Packard and Compaq, launched systems incorporating the processor. Prices started at $1,499.
"The combination of Intel processor and platform technologies and industry innovation provides the foundation for the next decade of desktop computing," said Louis Burns, vice president and general manager of Intel's Desktop Platforms Group.
During a flashy presentation at Intel's developer conference, the world's largest chip maker also launched a 1.9 gigahertz Pentium 4 for $375. The line previously topped out at 1.8 gigahertz.
Also yesterday, Intel cut prices on its 1.3 GHz, 1.4 GHz and 1.5 GHz Pentium 4 processors to $133 each — a decrease of up to 49 percent. Faster models also saw steep cuts.
Intel rival Advanced Micro Devices Inc. responded with its own reductions, including a 47 percent drop, to $130, for its flagship 1.4 GHz Athlon processor.
Though more efficient manufacturing techniques help make processor factories more efficient, both Intel's and AMD's bottom lines are likely to suffer in the short run during the price war.
The slumping PC industry is hoping a combination of faster, better and cheaper processors plus Microsoft's upcoming Windows XP operating system update will boost slumping sales.
"The key is XP," said Nathan Brookwood, an analyst at Insight 64, a Saratoga, Calif.-based research firm. "It will get consumers into the stores. Once they're in the stores, they're going to see these incredible values in terms of price and performance."
Currently, a PC with a Pentium 4 running at 1.5 GHz can be purchased for about $1,000. By the end of the year, Intel hopes the Pentium 4 will dominate all Intel-based systems priced above $800.
But, Burns said, it's not all about price. During a presentation, Intel demonstrated how the Pentium 4 can aid in tasks ranging from real-time business collaboration to producing personal music videos.
