As revealed here earlier, Intel chose today to unleash a battery of price cuts in its high end Pentium III desktop family.
The price changes are a direct attack on AMD's recently available Athlon K7. They will be followed shortly by action in the mobile and server arenas, we are given to understand.
Intel will keep its 600MHz .25micron Pentium III at the same price ($700/1000) for a little while, but has slashed the price of its 550MHz part to $490/1000.
It has cut the price of its 500MHz PIII to $255/1000, while, as reported here last month, the 450MHz Pentium III is effectively consigned to history, with a Celeron-like price of $187/1000.
As reported here, the Pentium II family is now dead, with the highest specified item, the 450MHz, costing the same as the PIII/450. This pricing mechanism means that Intel has managed, in the space of only a few months, to shift its entire PII family to the PIII family.
Intel will gradually move PIII type technology into its Celeron low end family.
The real question now is how long AMD can afford to keep its current pricing structure, or whether it can and will hold out against Intel's pricing action.
Later today, Intel will announce its Profusion SMP chipset.
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