Intel is planning to make price cuts of its Celeron chips and Pentium II and Pentium III processors a more frequent, though less systematic, occurrence, according to company sources.
"We used to cut prices once a quarter but found that sales froze prior to the cuts and obviously surged during the lower price periods," explained Archie Wilson, national sales manager for the chip maker.
Finding this situation wasn't conducive to the happiness of its distributors, Intel is beginning to vary its discount strategy. "Prices won't be cut at regular quarterly intervals anymore. The next lot of cuts will occur on June 6 and will either be on Celeron chips and Pentium IIs or Pentium IIIs. But that's all the information I can give, otherwise sales will freeze and we'll be in exactly the same position as before," Wilson asserted.