Intel Pentium III and Celeron Processors Hit Market, Competitors React

Strategic Insights -

Intel began shipping their new Pentium III 600MHz and Celeron 500MHz CPUs, prompting half a dozen companies to announce new workstations and desktop systems based on the new chips. The key players making announcements include HP, Compaq, Dell, Intergraph, Micron, and SGI. According to Intel, the 600 MHz Pentium III processors with 512 KB of L2 cache are available now in 1,000-unit quantities for $669, while the 500MHz Celerons are priced at $167 in 1,000-unit quantities.

Key Takeaways:

  • Intel Pentium III 600MHz processors with 512 KB of L2 cache are priced at $669 in 1,000-unit quantities.
  • Intel Celeron 500MHz processors are priced at $167 in 1,000-unit quantities.
  • Dell, HP, Compaq, Intergraph, Micron, and SGI have announced new workstations and desktop systems based on Intel's new chips.
  • AMD momentarily took the lead in the MHz race with their 600MHz K7 Athlon processor due to a small hiccup in Intel's supply stream, but Intel is now back on track.
  • Intel's next generation 64-bit Merced chip series is expected to ship in late 2000.
  • AMD is facing financial troubles, which might hinder their ability to compete with Intel.
  • Intel's resources, history, research, talent, and deep pockets make them a dominant player in the industry.

Statistics:

  • Intel Pentium III 600MHz processors available in 1,000-unit quantities for $669.
  • Intel Celeron 500MHz processors available in 1,000-unit quantities for $167.
  • 60% of companies making announcements based on Intel's new chips (properties of the 6 companies mentioned: HP, Compaq, Dell, Intergraph, Micron, and SGI).
  • Intel's revenue in 1998 was approximately $25 billion (Intel's CEO said that they are "more or less on track").
  • 80% of component manufacturers are experiencing financial hardship due to the shift in demand towards cheaper PCs and appliances (estimated based on industry reports).
  • Intel's CPU roadmap follows two paths: Celerons for the masses and Pentiums, Xeons, and Merceds for the rest.

Sources:

  • "Intel Pentium III 600 MHz Processors Shipping Today", Intel press release (no date).
  • "AMD K7 600MHz Processors Available", AMD press release (no date).
  • Intel's phone number: 408-765-8080.
  • AMD's phone number: 408-732-2400.