Manufacturing Industry

Look for more price cuts.(microprocessors)(Brief Article)(Statistical Data Included)

Purchasing, August, 2001

Microprocessor buyers can expect additional price reductions on Intel's mobile Pentium III chips. Intel slashed prices for six of the processors used in laptops and other portable PCs by 18-37% in July. More price reductions are likely as Intel looks to maintain its market dominance in mobile processors.

Intel is feeling competition from AMD, Transmeta, and VIA, but so far has been able to maintain a dominant market share in mobile processors. Until July, Intel had not drastically reduced mobile processor tags, although it cut prices of its Pentium III and Pentium 4 chips for desktops. "Intel's blended mobile processor average selling price will dedine 20% from fourth quarter 2001 to fourth quarter 2002 as a result of increased competition and...

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