Intel Cuts Pentium III Prices Up to 14 Percent

Intel counters the threat of AMD's new Athlon processor, due in the next month, by dreopping prices on the Pentium III by up to 14%.

Intel Corp. has cut prices up to 14 percent on its Pentium III processors, as the company prepares to introduce its fastest chip to date next month.

The price cuts also come a month or so before rival Advanced Micro Devices Inc. is due to introduce its Athlon processor, formerly the K-7, which it will aim at the same high-end desktop markets as Intel's Pentium III. Intel said the timing of the price reductions isn't related.

"We have a new product, the Pentium III 600MHz, coming shortly, and we're adjusting the pricing to make room for the new product," Intel spokesman Seth Walker said.

Effective Sunday, Intel cut by 12 percent the price of the 550MHz and 500MHz versions of the Pentium III, to US$658 and $423, respectively, for 1,000-unit orders. The price of the 450MHz Pentium III dropped 14 percent, to $230. Intel also cut the price of the 450MHz Pentium II processor by 14 percent, to $230, the company said.

An Intel executive last week said the company has begun shipping the 600MHz Pentium III to PC manufacturers, who plan to offer the chip in desktops and workstations in August.

Intel, in Santa Clara, California, can be reached at +1-408-987-8080,or at

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