Intel begins transition to Pentium III

Intel begins transition to Pentium III
Tom Foremski
Intel will this week introduce a 550MHz Pentium III microprocessor and cut prices on its existing microprocessors, forcing Advanced Micro Devices (AMD) to follow suit.
The price cuts will range from about 18 to 45 per cent and should be followed by PC system price cuts. Intel’s goal is to phase out Pentium II production and move its customer base to the Pentium III.
AMD, already suffering from price competition with Intel, will be forced to improve manufacturing efficiencies in order to keep up with Intel and make money. It is launching its K7 microprocessor in June which will challenge Intel in the middle of the market rather than at the low end where profits are razor thin.

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