SANTA CLARA, Calif. – Intel Corp. introduced its fastest Pentium 4 processor at bargain-basement prices today, putting pressure on rival Advanced Micro Devices Inc. to match the speed and the price tag.
The chip-making giant said the low price of the 1.7 gigahertz Pentium 4 is a reflection of production savings that are being passed on to customers. Many analysts believe it is an attempt to boost Intel’s sagging share of the semiconductor market.
The new processor will sell for $352 when purchased in bulk. By comparison, when Intel unveiled its 1.1 GHz Pentium III last July, it carried the hefty price tag of $990.
The company also will cut prices on its slower Pentium 4 processors next week. The 1.5 GHz model, which debuted in November for $637, will sell for $256. The 1.3 GHz processor, which was originally priced at $332, will cost $193.
In the fourth quarter of 2000, Intel processors powered 81.5 percent of PCs while rival Advanced Micro Devices had 17.1 percent. In the first months of 2001, Intel’s share fell to 77.3 percent and AMD’s grew to 21.1 percent, according to preliminary numbers compiled by Mercury Research in Scottsdale, Ariz.
AMD’s fastest Athlon processor runs at 1.33 GHz and sells for $319. The company has so far announced no plans to lower the price.BR>
Shares of Intel were off $2.02 at $30.41 in midday trading on the Nasdaq Stock Market.
