Intel to cut prices, push Pentium II

Intel Corporation will cut prices on low-end Pentium IIs a month earlier than expected to speed the transition from Pentium MMX to the Pentium II,sources say. Intel typically reduced prices once a quarter but will lowerprices on 233 and 266 MHz Pentium II microprocessors on January 1st, amonth earlier. On February 1st, faster CPUs such as the 300 MHz Pentium IIwill be reduced as expected.

The 233MHz Pentium II will drop from $395 to less than $300 while the 266MHz version will fall from $520 to less than $375. Intel will reduces theprice of the 300-MHz CPOU from $721 to less than $525. Also in February,Intel will introduce the 333 MHz Pentium II, while 350 and 400 MHz versions are due in April when the new 100 MHz bus debuts. The 400 MHz CPUwill debut for less than $1000, far below the near-$2000 price tag of the300 MHz version when it debuted this Fall.