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Intel releases new prices on Pentiums

Intel is announcing price cuts on Pentium and Pentium Pro processors that could trigger a new PC price war.

Intel this week is announcing price cuts on Pentium and Pentium Pro processors that could trigger a new PC price war.

Highlights include reductions of 20 percent to 25 percent on the most popular Pentium processors, including the 120-, 133-, and 166-MHz versions.

For example, the 166-MHz Pentium is dropping from its $630 price level in January--the last major adjustment--to just under $500. Analysts said this will spur further PC price cuts.

"These days [the triggering of PC system price cuts] can happen very quickly. [Timing] to a certain extent is dependent on discipline in the ranks. If Dell and Gateway do, then everybody has to follow suit," said Nathan Brookwood, an analyst at Dataquest, a market research firm in San Jose, California.

One of the reasons Intel is adjusting Pentium prices is to make room for a 200-MHz Pentium processor that is expected to appear in systems from vendors such as IBM and Gateway 2000 in June.

Intel is also cutting prices sharply for its high-end Pentium Pro processors, compared to the January benchmark. These processors are currently used in workstations and servers.

The expensive 200-MHz Pentium Pro processor with a large cache memory (512K) falls about 20 percent in price--from about $1,530 in January--while the less-expensive version, with a smaller cache (256K), tumbles about 30 percent, sources said. Following are the new prices.

The Pentium Pro Processor:
--200 MHz 512k cache $1,217
--166 MHz 512k cache $809
--200 MHz 256k cache $707
--180 MHz 256k cache $600
--150 MHz 256k cache $534

The Pentium Processor (Desktop):
--166 MHz $498
--150 MHz $364
--133 MHz $257
--120 MHz $188
--100 MHz $134
--90 MHz $134
--75 MHz $106

The Pentium Processor (Mobile):
--133 MHz $307
--120 MHz $208
--100 MHz $106
--90 MHz $106
--75 MHz $85