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Intel to cut chip prices
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June 12, 1997: 4:25 p.m. ET
Move comes as competition in multimedia chips intensifies
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NEW YORK (CNNfn) - Intel Corp. confirmed Thursday it will cut prices on its Pentium MMX chips. The company would not quantify the cuts, but published reports say it will reduce chip prices roughly 35 percent.
The price cuts come as Intel has seen increasing competition, particularly from multimedia chips produced by such companies as Cyrix and Advanced Micro Devices.
Intel says it can lower prices because it plans to raise output by increasing the number of chips it can obtain from a single piece of silicon.
Intel had planned on Aug.1 to cut the Pentium 223 MMX from $583 to $436. Now, according to industry publication Computer Retail Week, the chip maker will cut the price to $367.
The cut on the Pentium 200 MMX will be even more dramatic, dropping from $484 to $240 rather than a previously planned $331, the magazine said. And the Pentium 166MMX will drop from $265 to $138 rather than $200.
The news did not not help Intel shares, which took another hit as Goldman Sachs lowered its 1997 earnings estimate for the company by 20 cents to $8.50 per share. Intel closed down 3-27/32 at 143-21/32 on the New York Stock Exchange.
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