The company also demonstrated a Pentium III prototype that ran at 1002 MHz, a new land speed record for processors, according to Albert Yu, senior vice president of microprocessor products at Intel.
Intel will release Pentium IIs for notebooks running at 400 MHz and 433 MHz in the first half of the year, said Yu. Both chips will be made on the more advanced 0.18-micron process, the first processors to be made on that process. In the second half, the company will introduce 500-MHz-plus notebook chips as well as a chipset technology called "Geyserville." Geyserville, which will be detailed in depth tomorrow, lowers power consumption, according to sources.
The notebook effort comes as part of an effort to maintain the company's historic growth rates. Computer shipments will continue to grow in double digit figures, Paul Otellini, general manager of the Intel Architecture Business Group, said in his keynote.
In fact, by the year 2000, PC sales will likely outpace TV sales worldwide, Otellini said. Prices, however, continue to drop. More ominous, approximately 70 to 80 percent of all current purchases come from repeat buyers.
"We have to find the recipe to bring the rest of the 50 percent of the U.S. households and 80 percent of the homes on a worldwide basis" to the computing market, he said.
As for notebooks, he added: "You will see notebooks go from $1,900 to $1,500 to $1,200. We are working with our partners in the industry to find the next price point. We don't know if it will be $999, but we will work with our partners to establish the new price point.
"You will see processor performance that is equivalent to the desktop," he added. Intel itself will switch from having a computer base consisting of 80 percent desktops to 80 percent notebooks.
The effort to drop notebook prices follows a disparity in the market caused by cheap desktops. Last year, while notebook makers were still directing their wares toward performance users, resellers were reporting fantastic sales on any products priced below $1,300.
Competition is also increasing. Earlier this year, Toshiba started to use AMD processors in its consumer notebooks in Japan. Toshiba has now extended it use of AMD chips to Canada and several European companies, say AMD sources.
For Intel's other product lines, Otellini, Yu, and others said to expect the following: