Firing the starting gun on this autumn’s heavily flagged personal computer price war, Intel Corp has cut prices 38% on the low-end 60MHz Pentium and cut the 66MHz version by 30%. First out of the blocks was Compaq Computer Corp, which cut prices on its ProLinea budget models by up to 20%, on its Deskpro XL models by up to 11%, on its Deskpro XE line by up to 18%, and on the Contura notebooks by up to 17%. Dell Computer Corp, which already has a $2,000 Pentium system, is expected to add a 90MHz Pentium machine this month, selling for $2,800 with 8Mb memory, 210Mb disk and a 14 Super VGA monitor. Intel’s strategy is to enable manufacturers to price Pentium machines at under $2,000, the ceiling for big sales into the fireside market. Intel suggests that no more big cuts are on the way this year, although it may shave 3% to 5% off prices in the fourth quarter. Intel is also working on a 3.3V 75MHz Pentium, intended to be its mainstream desktop processor, InfoWorld reports, although the 75MHz version of Intel’s current flagship chip will appear first in notebook computers, notably new models of IBM Corp’s ThinkPad family.
