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What price Celeron? $155

By James Carbone -- Purchasing, 5/21/1998

Intel has priced its streamlined Pentium II Celeron microprocessor at $155 and has slashed the prices of other Pentium II MPUs. The chip is aimed at the sub-$1,000 home PC market. It also plans to announce Pentium processors for the mid-range and workstation markets.

Celeron is priced less than National's 300 MHz MII chip which lists for $180.

Celeron has come under fire because it lacks L2 cache memory and benchmark tests show it does not perform as well as expected. However, Intel says that even without secondary cache, Celeron works better than a Pentium MMX chip. It is a chip for home use and is quicker for word-processing, multimedia, and three-dimensional performance, according to Intel.

Intel plans to follow up Celeron with another processor for the home market in the second half of the year. The processor, code named Mendocino, will be faster than the 266 Megahertz (MHz) basic Celeron, and will likely cost more.

Intel also is introducing Pentium II processors running at 350 and 400 MHz. According to Intel, they will deliver a higher level of performance for business and will be able to run more advanced operating systems and 3-D-based Web browsers. Home computers based on Pentium II processors feature new technologies such as DVD players and AGP graphics, delivering the best computing experience available. The 350 MHz version costs $621 and the 400 MHz version is $824 in 1,000-unit quantities.

Intel also says it will introduce the Pentium II Xeon, a new brand name for a line of processors designed for mid-range and higher server and workstation applications.

For servers, the Pentium II Xeon has been designed with larger and faster Level 2 caches, as well as multiprocessing capabilities, which enable users to expand their systems.

For workstations, processor performance coupled with faster Level 2 caches provide the higher performance needed to address the diverse needs of the workstation market segment.

"Intel's goal is to deliver the best products for each segment of computing," says Paul Otellini, executive vice president, Intel Architecture Business Group.

Intel also cut the price of other Pentium II processors. The 333-Mhz chip was reduced from $583 to $492; the 300-MHz chip from $530 to $375; the 266 MHz from $375 to $246; and the 233 Mhz from $268 to $198.

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