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Notebook prices fall with chip cuts

Two notebook makers discount models as Intel marks down its mobile Pentium MMX and Pentium II chips.

Two notebook makers slashed prices on the same day that Intel cut costs on its mobile Pentium MMX and Pentium II chips.

While Acer and WinBook lowered prices on existing models, Intel

Mobile Pentium and Pentium II chips
Processor Old price New price
266-MHz Pentium II $696 $637
233-MHz Pentium II $466 $391
266-MHz Pentium MMX $466 $348
233-MHz Pentium MMX $359 $213
200-MHz Pentium MMX $230 $134
Source: Intel
cut the price of 233-MHz and 266-MHz mobile Pentium II processors that were launched at the beginning of April, as well as older Pentium MMX chips. The chip cuts range from 8 percent up to 42 percent.

Together, the price actions herald a new round of falling notebook prices, as portables are being offered at steep discounts to make way for systems using the newer mobile Pentium II chip.

The Pentium MMX line was most heavily discounted. Intel reduced the cost of a 233-MHz Pentium MMX 41 percent to $213 from $359, while the 200-MHz version plummeted 42 percent to $134 from $230.

The 266-MHz Pentium MMX chip was lowered 25 percent to $348 from $466. All prices are in quantities of 1,000.

Meanwhile, the price of the 266-MHZ Pentium II fell to $637 from $696, while the 233-MHz version drops to $391 from $466.

Separately, Acer cut prices on selected models in its TravelMate and Extensa lines by up to 20 percent. The high-end ultra-portable TravelMate 7164TE, with a 266-MHz Pentium MMX processor and a 4.1GB hard drive, has been cut from $4,299 to $3,999, a savings of 7 percent.

The Extensa 391C, with a 133-MHz Pentium MMX processor and a 1.6GB hard drive, was cut 20 percent, from $1,499 to $1,199.

WinBook has released a 233-MHz notebook priced at $1,199. The WinBook XL, available on the company's Web site, comes with a 233-MHz AMD K6 processor and a 1.6GB hard drive. The WinBook XL with an internal 56-kbps modem is $1,359.

Earlier this month, Hewlett-Packard also cut prices on notebook models using the MMX chip, to make room for Pentium II models announced yesterday.

Intel is an investor in CNET: The Computer Network.