LAS VEGAS -- Intel Corp. today introduced its two latest Celeron microprocessors, attempting to cement its hold over the value desktop space. The Santa Clara, Calif., company said it was shipping 733-MHz and 766-MHz Celerons to personal computer makers, including Hewlett-Packard Co. and others.
The 766-MHz chip costs $170 in lots of 1,000 units. The 733-MHz version costs $112 in the same quantity.
Executives at Advanced Micro Devices Inc. in Sunnyvale, Calif., have been unable to mount much competition against the Celeron because a shortage of low-end chip sets have prevented AMD's Duron from shipping in substantial volumes.
AMD chairman and chief executive officer Jerry Sanders last week said he expects Via Technologies Inc. in Taiwan to begin shipping its KM133 chip set in December, alleviating the shortage. While AMD manufactures chip sets to help OEMs into production, its stated strategy has been to allow Via and other chip set firms to the lion's share of the market.
According to a spokesman for Intel, the two Celerons will be Intel's main offering for low-end PCs sold during the year-end holidays. "Intel continues to be the leader in the value PC segment," he said.
The Intel spokesman based his statement on figures from NPD Intelect of Port Washington, N.Y., which show that Intel commands above a 90% share in the market for sub-$1,000 PCs sold within U.S. retail chains.
In a separate study, NPC said sales of U.S. retail desktop PCs are down 16.2% from 1999, to 7.6 million units. The average price of a PC, however, climbed slightly to $987.
Hewlett-Packard ranked first in desktop sales with a 36.7% market share, followed closely by Compaq Computer Corp. with a 35.6% share. Apple Computer Corp. was third, with a 9.1% share.