Chip giant Intel is likely to announce bigger than expected price cuts for its range of Pentium processors in what is seen as a retaliation move against Cyrix and AMD.
Intel claimed that the price cuts would be larger than expected because of efficiencies resulting from changes in the manufacturing process that were implemented six weeks ago. The price cuts are due to come into effect on 28 July.
According to US reports, the price of the Pentium 233 MMX, originally $583, was due to be cut to $436 but has been slashed further to $367. The 200 MMX cut was deeper, from $484 to $240, revised from $331, while the 166 MMX at $265 fell to $138 from a proposed $200.
Meanwhile, Digital has just launched its first range of desktop computers, the venturis FX-2 machines, based on AMD?s K6 MMX chip, which are to be sold alongside the identical Pentium MMX technology-based PCs that were released last month.
But their arrival has been met by a lack of enthusiasm from the channel despite AMD?s continued emphasis on pricing its chips at 25 per cent below Intel?s offerings.
Ideal Hardware stated that it ?had no intention of ordering vast quantities? of the Venturis FX-2 machines, due to ship at the end of this month. Mark Walker, PC commercial products manager at Ideal, insisted it had nothing to do with any potential difficulties that may arise from the fact that the AMD-based contingent of the Venturis range will not carry the ?Intel Inside? badge.
He said: ?We don?t have reservations with the product, but we do not believe this will be a volume seller in the UK. It was developed more for the US market.?
Ian Neale, Westcoast Digital sales manager, refused to comment on whether the distributor would supply the machines.
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