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Semiconductor industry

Intel Unveils Pentium III Microprocessors with Enhanced Internet Capabilities

Strategic Insights

— 2 min read

Intel, the world's leading semiconductor manufacturer, has launched a new generation of Pentium microprocessors with a worldwide advertising campaign emphasizing the internet capabilities of PCs built around the new chips. The Pentium III chips will increase PC performance, enabling full-screen, full-motion video and blurring the distinction between television and internet services. The new chips are designed for high-performance desktop PCs aimed at consumers and business users.

Key Takeaways:

  • The Pentium III microprocessors will bring full-screen, full-motion video to PC screens, blurring the distinctions between television and internet services.
  • The new chips will enable PCs to become truly competitive with purpose-built computer game machines that plug into TV sets.
  • The Pentium III processors will have a new set of microprocessor instructions that enhance graphics capabilities, but users will not see the full benefit until software developers create new applications that utilize these instructions.
  • Intel expects over 200 games and software programs to be ready to take advantage of the new instruction set when PCs based on Pentium III are introduced, but it is unclear when these programs will become available in retail stores.
  • The Pentium III processors will also be well-suited for video and audio broadcast via the internet, promising superior graphics capabilities for business and consumer applications.
  • Users will need broadband access to the internet to get the full benefit of Pentium III's capabilities in internet applications.
  • The Pentium III will allow web site publishers to become broadcasters, challenging established TV broadcasters.
  • Intel has included an identifying number in the new chips that can be used to authenticate electronic mail, but has changed plans to ship Pentium IIIs with the ID feature turned on, giving users the option to activate or not.
  • The Pentium III will enable Intel to compete more aggressively in the low-end PC market by cutting prices on lower-performance chips without sacrificing margins.
  • Intel slipped prices on its Celeron microprocessors by up to 24%, prompting Advanced Micro Devices to take similar action.

Statistics:

  • 250 computer, software, and internet companies are expected to demonstrate new products and services using the Intel technology at an Intel event in Silicon Valley.
  • The new Pentium III microprocessors will be available in PCs from leading manufacturers by the end of this month.
  • The new chips will have a new set of microprocessor instructions that enhance graphics capabilities.
  • Over 200 games and software programs are expected to be ready to take advantage of the new instruction set.
  • The Pentium III processors will require broadband access to the internet to get the full benefit of their capabilities.

Sources:

  • "Intel Unveils New Pentium III Chips," Financial Times Limited 1999.

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