Intel will cut the prices of its Pentium II processors at the end of January next year, once again prompting questions that it is seeking to capture a Christmas market.
A source close to Intel said today that at the end of January next year, Pentium IIs will be positioned as entry level processors, meaning that people who buy before Christmas this year will be disappointed barely three weeks after.
He said: ?There will be a major price adjustment at the end of January and the next one will be at the end of April. The Q1 prices will be very aggressive and part of a plan to ramp the PII. It will really position the PII at every level of the marketplace.?
He said that while Intel will sell MMX processors in the first quarter of 1998, at that point sales will tail off as the ceramic processor becomes obsolete.
He added that Intel was set to introduce a Pentium II processor in a scaled down format which will fit into NetPCs. ?It will make the package very small,? he said. The idea was to ensure that Intel could deliver the form-factor that PC manufacturers wanted to compete with the NC platform.
An Intel representative said that her company was unable to comment on its future plans.
Last week, Intel, as revealed on the VNU Newswire three weeks earlier, further slashed its PII prices. It has also started a fierce advertising campaign here in Europe to promote the Pentium II as the games machine ?par excellence?.
That campaign was originally started in the US and then later moved to other continents.
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