Intel Corp will neither confirm or deny reports that it is ready to slash prices on its Pentium II processors by as much as half at the beginning of next month. The company says it will be announcing price cuts around that time but will not give any indication as to what they may be. But it has confirmed that it will stop producing the original, standard Pentium processors within the next few month, because there simply isn’t the demand for them that there was. Computer Retail Week heard about the price cuts on the same day Intel reported its interim results which showed net income for the six months to June 28 up 87.5% to $3.63bn while its revenue grew 34.0% to $12.41bn (CI No 3,204). Speculation suggests the company wants the market to be completely Pentium II based by the middle of next year, and follows its announcement earlier in the week of the new Pentium II with Error Correction Code for the server market (CI No 3,204). Intel told Computergram then that the industry can expect a series of Pentium II releases over the coming 12 to 18 months as the processor family expands. It is thought the company is set to embark on a new strategy commencing on August 1 which will start with a big promotional campaign, and Computer Retail week says Intel is likely to begin phasing out its standard Pentium processors. Intel spokesperson Julian Powell said processor prices always drop after a product release, but said prices will not be publicly announced until they become effective.
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