Compaq Computer Corp has introduced the first PCs based on Advanced Micro Devices Inc’s new 750MHz processor. As we reported last week (CI No 3,796), AMD introduced a faster version of its flagship chip yesterday along with a speedier 533MHz version of its Intel Celeron rival, the K6-2. IBM Corp and CyberMax Computer Inc are also planning to introduce PCs based on the Athlon. Compaq has been taking orders for 750MHz Athlon-based Presarios since last Wednesday, with prices starting at $2,549, and IBM is planning to launch PCs in its Aptiva range based on the new chip.
AMD’s latest upgrade means that the Athlon is once again the fastest x86 chip on the block. Intel’s fastest Pentium III runs at 733MHz and the San Jose-based chipmaker is unlikely to hike the chip’s clockspeed again until next year. This, combined with Intel’s admission that it can’t produce enough Pentium IIIs to meet demand, will make AMD’s challenger attractive to PC companies that want to produce high performance desktop systems.
However, AMD has some production issues of its own because of the lack of motherboards that support its Athlon chip. According to Keith Diefendorff, analyst at the Microprocessor Report, in the third quarter AMD built about 350,000 Athlons and shipped 200,000 (because of lack of motherboards). AMD says it has ambitious plans to manufacture 800,000 Athlons this quarter.
The 750MHz AMD Athlon processor is priced at $799 each in 1,000 unit quantities; the K6-2/533 processor is priced at $167 each in 1,000-unit quantities. Expect another round of price cuts from Intel in response to AMD’s new chips.
