The low-cost PC market received a boost yesterday as Intel introduced 2.0GHz Celeron processor.
All major hardware vendors use Celeron chips in low-cost PCs. These chips offer less performance than Intel's top-of-the-range Pentium 4 chips, but cost far less. The 2.0GHz Celeron will cost $103 (£66) in 1,000-unit quantities, while the slowest Pentium 4 still sold by Intel, at 2.2GHz, costs $193 (£125) in 1,000-unit quantities.
However, the performance gap between the fastest Celeron and the slowest Pentium 4 is relatively small. End users have to decide whether the Pentium 4's extra performance is worth the several hundred extra dollars that a Pentium 4 adds to the retail price of a PC.
Intel has continued to focus on the market for low-cost PCs, while rival Advanced Micro Devices is to phase out its low-cost Duron processors by 2003.
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