One Year Ago: Intel to slash chip prices

This story first published June 11, 1997

Intel will deal a hammer blow to AMD and Cyrix when it introduces shock low prices for its mainstream processor ranges at the end of July, according to sources close to the company. The prices had originally been planned for November.

The chip behemoth will take big chunks out of its Pentium MMX line-up with 233MHz parts down from $594 to $378, 200MHz chips $492 to $247 and 166MHz devices reduced from $270 to $142.

In low-power notebook chips, 166MHz chips fall from $508 to $341 and 150MHz chips go from $336 to $236. The new 133MHz MMX chip comes in at $176. All the price cuts take affect on July 28.

The cuts sound a loud warning to rivals and a death knell for 'classic' non-MMX Intel chips.

An Intel spokeswoman said a dye shrink on the MMX line was providing Intel with excellent yields and denied that Intel is being hurt by other x86 makers.

"I was expecting them to take big chunks out but these certainly are substantial," said Richard Baker, AMD marketing manager for PC products. "I'd love to think that they're worried about us and Cyrix."