Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, November 2, 1995 TAG: 9511020072
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: Bloomberg Business News
DATELINE: SANTA CLARA, CALIF. LENGTH: Medium
Intel's Pentium Pro, starting as low as $974, is the sixth in the x86 line of microprocessors found in almost 75 percent of the world's personal computers. Its relatively low cost will reduce prices on some high-end computer workstations to $5,000 from $50,000, said Ian Wilson, the chipmaker's European technology manager.
``We will be delivering high-end workstation performance with PC economics,'' said Andy Grove, chief executive officer of Intel. Workstations are powerful machines used mostly by engineers, designers and scientists.
Intel is expected to ship 2 million Pentium Pro units in 1996, said Mark Edelstone, analyst at Prudential Securities Inc.
The company could use the Pentium Pro in a price war against Sun Microsystems Inc., Silicon Graphics Inc. and other computer makers who sell
The Pentium Pro also will be available in computer servers that use software that takes advantage of the chip's speed.
The chip will produce more power at less cost in computers used for animation, industrial design and other graphics programs, Intel said. For example, three-dimensional film techniques used in the creation of such movies as ``Jurassic Park'' and ``The Mask'' will now be much more affordable, company officials said.
Prices of the Pentium Pro will range from $974 to $1,325 for a 200-megahertz chip. Two more-powerful versions will be available next year.
The microprocessor will be used by International Business Machines Corp., Compaq Computer Corp., Dell Computer Corp., Gateway 2000 and Compaq Computer Corp. in new, high-end desktop computers that will provide improved graphics and video capabilities for less cost than current models. Pentium Pro home computers aren't expected to be available until 1997. Intel will continue to market its current Pentium for use in PCs.
``Intel's earnings and revenue in 1996 will be driven by Pentium,'' not Pentium Pro, said Mark Edelstone, analyst at Prudential Securities Inc. Pentium Pro won't have a big effect on Intel's earnings until 1997, he said.
Intel's shares rose 15/16 to 70 13/16 in trading of 9.54 million shares, near their three-month daily average. It was the most-active stock in U.S. markets. Sun Microsystems shares fell 1 5/8 to 76 3/8 and Silicon Graphics' stock dropped 1 5/8 to 31 1/2.
The Pentium Pro processor, designed to understand software written in 32-bit code, is twice as powerful as the Pentium, which sells for less than $350, Wilson said. In a demonstration at Intel's annual analyst meeting yesterday, a Pentium Pro-based machine outperformed a workstation from Silicon Graphics.
The Pentium Pro will work with Microsoft Corp.'s Windows NT or IBM's OS/2 operating systems. The chip won't perform any faster than current Pentium processors when it tries to read 16-bit software, such as Windows and Windows 95.
by CNB