Mike Zabaneh, vice president of Tangent Computer, a Burlingame, Calif.-based system builder and solution provider, said Intel's latest pricing move was not unexpected. However, Zabaneh has noticed industry pressure accelerating because of price competition between Hewlett-Packard, Palo Alto, Calif., and Dell, Round Rock, Texas. "
The top two or three [OEMs] are just duking it out big time," Zabaneh said. "Dell is just being extremely aggressive, and HP is being extremely aggressive. It's not tough finding the business. It's tough winning the business."
Intel has said it is delaying the official launch of its 4-GHz Pentium 4 processor until early 2005vs. the end of 2004, but system builders said the company remains on track to ship a 3.8-GHz Pentium 4 this year. Some system builders have voiced concern that a delay in the new, higher-end products could create additional pricing pressures during the heavy, year-end selling season.
In other price cuts, Intel reduced the price of its 2.8-GHz Celeron D chip to $103 from $117 and lowered its Mobile Pentium 4 processor to $234 from $294. Pricing for those chips is also based on 1,000-unit lots.
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