MMX chips to make PC prices plummet

Manufacturers are planning to offer consumers a cheaper alternative to Pentium machines

PCs equipped with Intel?s MMX technology, although initially priced higher than conventional Pentiums, won?t remain a rich man?s plaything for more than a few months at most. As MMX technology comes down in price, PC makers will be tempting consumers with bargain deals on conventional Pentium machines. IBM intends to be particularly aggressive on price. ?Soon you?ll see our 166MHz and 200MHz MMX systems at prices lower than a conventional P166 or P200 was in December,? said Larry Smith, head of IBM?s consumer division. The first wave of IBM Aptivas incorporating MMX will be shipping to retailers in March, hard on the heels of a refresh of conventional systems in February. When that range appears, a conventional P166 Aptiva will be ?several hundred pounds lower than it was in December,? said Smith. ?MMX will add some $100 to $200 to a system price,? said Steve Crawley, AST product marketing manager. ?But there will be other components added to take advantage of MMX technology to account for this price increase. As non-MMX chip prices come down, it will mean about $150 price drop for non-MMX entry-level systems.? A 166MHz MMX chip will cost about $400 to large OEMs, the price of a conventional non-MMX P166. But one PC maker said a conventional P166 chip will drop $100 in February and further in May. MMX chip prices will also drop, but not as much, so by May there will be a $90 differential between MMX and conventional chips. J PC vendors are very excited about Intel?s MMX multimedia extensions for Pentium and are integrating them into their consumer PCs at the first possible opportunity. But the advantage the new chips will bring to business users is dubious. AST, like most PC manufacturers, will integrate MMX into its consumer range at its refresh in February. AST MMX-equipped portables will follow in Q2 and business desktops in Q3. ?There?s much less justification for MMX in business machines,? said Crawley. ?Business users are hardly crying out for it.?