Intel Corporation announced the launch Monday of its long-awaited Pentium 4 chip, with the speed of the initial version of the new microprocessor faster than some experts had predicted. THe chip, which will be the fastest in the market, will come in two versions, a 1.4 gigahertz and 1.5 GHz.
This compares to 1.2 GHz for Advanced Micro Devices (AMD) Inc's Athlon, which has until now been the quickest microprocessor. Analysts had expected Intel to launch only a 1.4 GHz version. Computer manufacturers including Compaq, Dell, Gateway and Hewlett Packard announced they would be installing the new chip on their PCs, with new models becoming available for the holiday season.
Speaking to reporters at a press briefing, executive vice president and general manager of Intel Architecture Group Paul Otellini said pricing of the chip was deliberately "aggressive". "Pricing is more aggressive than we have been in the past as we are in a good position to ramp up volume of the Pentium 4," he said.
But he denied that Intel had set the price with AMD in mind. "We don't look at AMD's pricing. We price things to move the volume." The initial 1.5 GHz version will be priced at $819 while the 1.4 GHz chip will sell at $644, the company said.
While Intel is banking on the Pentium 4 to safeguard its future growth, its launch comes amid concerns over slowing PC sales. Many analysts are also questioning whether the company will be able to mass-produce the processor quickly enough to stay ahead of competitors.
The group also reiterated that it expects to move up to a 2 GHz Pentium 4 by the third quarter of 2001. The P4 will initially be manufactured using 0.18 micron technology but critics, who include Morgan Stanley, argue that this method is costly and point out that Intel needs to move to 0.13 technology to achieve cost-effective and high-volume production. — (AFP, Washington)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
