Intel Ready To Deliver 3GHz P4

The product launch likely will affect pricing throughout Intel's P4 lineup in the remaining six weeks of the fourth quarter, which covers the peak holiday selling season, said the solution providers, who wished to remain anonymous.

An Intel spokesman would neither confirm nor deny the Nov. 14 launch date but said the company still plans to release the 3GHz P4 chip this quarter.

By coming out with a 3GHz product in that time frame, Intel would reach an important psychological milestone and beat chip rivals such as Advanced Micro Devices and IBM, the solution providers said. Plus, the inception of a 3GHz P4 would change the positioning of desktops built with 2.6GHz and 2.8GHz processors, currently the highest-end P4s, they noted.

"They are going to drop the price on the high end," one solution provider said, explaining that the 2.6GHz P4 could become the new "sweet spot" for price and performance after the 3GHz launch. Although the new processor and expected pricing moves could realign the chip market, the solution provider said, "I think the market is stable. I think the market is still there."

Intel last month reduced prices on some of its mobile processors. The 2.8GHz P4, now Intel's highest-speed processor, is now priced at $508 in 1,000-unit quantities, for example.