Intel to launch 1.8 GHz Pentium IV

Intel executive vice president Michael Splinter, speaking at the annual PC

Expo show in New York said the firm was planning to launch a series of Pentium 4

processors with speeds of 1.6 to 1.8 GHz, sometime next week. The new chips are

already being shipped to customers and increase the performance range from the

current 1.7GHz level. The new chips will add to other Pentium 4 chips running at

1.3, Ghz, 1.4 Ghz and 1.5 Ghz speeds.

Analysts said the aggressive succession in the rate at which Intel is

launching faster Pentium 4 chips appears to indicate that Intel is determined to

develop a new performance difference between its chips and the Athlon processors

from AMD which run at a maximum speed of 1.4 GHz.

Until three months ago, AMD was selling the fastest desktop processors. AMD

has so far failed to respond to Intel's 1.7 GHz Pentium 4 processor, which was

introduced at a stunning low price of $330. Analysts think AMD will introduce

new faster version of the Athlon soon in order to close the performance gap with

Intel.

For those who are in the market for a new computer, the next couple of months

could prove a prime opportunity to purchase as hardware makers are trying to

rebuild their sales momentum by offering state-of-the-art machines at cut-rate

prices.

"We are going to be extremely aggressive with Pentium 4, basically

bringing customers incredible value. We're going to price Pentium 4 systems very

much like we would a Pentium III and encouraging the transition," said Dell

chairman Michael Dell.

Dell said he is optimistic his firm's sales will continue to outpace the

market, especially after Microsoft releases Windows XP in late October. "I

think the market should see an increase in growth as we get the new operating

systems and new processors are rolling out. We expect that Dell will continue to

grow much faster than the market."

Already Dell has overtaken Compaq in becoming the largest PC vendor in the

United States. Its first quarter unit growth was 27 percent compared less than

10% for Compaq.