Research Brief

Intel Cuts Pentium Prices, Tells Industry to Expect Faster

Intel Corporation announced new pricing for Pentium and Pentium Pro processors, driven by the company's enormous manufacturing capacity. Intel stated its volume production capacity for the faster Pentium chips, produced with .35 micron fabrication was ahead of schedule. Intel's 150 and 166 MHz Pentiums are produced with this technology and the company's plants reached full production three months sooner than expected. Intel's 133 MHz Pentiums were scheduled to move from the current .6 micron fabrication technology to .35 micron. Instead, Intel will keep the 133 MHz Pentiums production in the .6 micron fabrication plants and use .35 micron technology as a springboard for the 180 and 200 MHz Pentiums expected later this year.

Product

Price

Voltage

Package

Pentium Pro Processor

     

200 MHz 512k cache

$1,528

3.3V

PGA

166 MHz 512k cache

$1,319

3.3V

PGA

200 MHz 256k cache

$1,018

3.3V

PGA

180 MHz 256k cache

$911

3.3V

PGA

150 MHz 256k cache

$804

3.1V

PGA
       

Pentium Processor

     

166 MHz

$632

3.3V

PGA

150 MHz

$428

3.3V

PGA

133 MHz

$321

3.3V

PGA

120 MHz

$252

3.3V

PGA
 

$292

3.3V/2.9V

TCP
 

$292

3.3V/2.9V

PGA

100 MHz

$198

3.3V

PGA

90 MHz

$198

3.3V

PGA
 

$198

3.3V/2.9V

TCP
 

$198

3.3V/2.9V

PGA

75 MHz

$106

3.3V

PGA
 

$106

3.3V/2.9V

TCP
 

$106

3.3V/2.9V

PGA

Prices when purchased in lots of 1000 or more

Source: Intel Corporation

Analysis

Intel moved more quickly to its .35 micron fabrication technology than expected. Intel realized greater yields and volume production than planned as its .35 micron fabs came on line. As the table above shows, Intel consolidated pricing for its 90 and 100 MHz Pentiums; Workgroup Strategic expects the 120 MHz Pentiums to sell for the same price as the 100 MHz Pentiums later this year. In this way, Intel will push the 150 MHz and faster Pentiums as the standard for the desktop by the end of 1996. Consumers should expect to pay $2,500-$3,000 for Pentium systems with the 150 and 166 MHz processors. During this time frame, Intel will introduce its P55 multimedia enabled processor. The P55 architecture offers Pentium performance with integrated Native Signal Processing and other technologies for multimedia rich applications.