A survey released by PC Data late Friday has shown the extent to which Intel underestimated the nature of the PC market.
According to PC Data, AMD's share from November to January rose to 33 per cent in the $1,000 to $1,500 market. It had previously held around a third of the sub $1,000 sector.
Now AMD is positioning its K6-III processor against the recently released Pentium III, with benchmarks, such as those posted on Tom's Hardware Page last week, showing there is merit to its argument.
Compaq will use AMD's K6-III, as will Gateway. Intel says the sweet spot for performance machines is currently just under $2,000, but that is likely to change. AMD claimed this week that nine out of the top 10 PC manufacturers now use its processors.
Intel senior executives do realise their mistake. At Intel's Developer Forum last week, both Paul Otellini, senior vice president of IA architecture, and Pat Gelsinger, general manager of Intel's desktop products division, said they had miscalculated at the low end.
That will mean Intel is likely to step up future product announcements. Its 550MHz Pentium III part will be released in May, and price cuts on the new Pentium III processors is likely to be accelerated, sources said.
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