January 16, 1998 (TAIPEI) -- Microprocessors that are less expensive than those made by Intel Corp., including the AMD
K6, are enjoying an increasing market share, especially for low-priced computer-related products.
Some Taiwan-based computer makers are planning to use such less-expensive non-Intel microchips. Low-priced computers
have been big sellers worldwide since mid 1997.
In 1998, desktop models priced less than US$1,000 and notebooks priced below US$1,500 are expected to enjoy brisk sales.
Computer makers need to slash production costs to sustain profit margins. One way to reduce costs is to procure less
expensive microprocessors, including those made by Cyrix Corp. and Advanced Micro Devices Inc. (AMD).
Cyrix's GXm for notebook computers is witnessing strong sales. Compaq Computer Corp. will use the GXm in a new
notebook scheduled to debut in the first half of this year. Compaq expects the model to account for 5 percent of its total
notebook PC production.
Clevo Co., First International Computer Inc., Twinhead International Corp., Acer Inc. and other computer makers have
finished testing the microprocessor and are developing GXm products.
A spokesman for Tatung Co. said computer makers will increase their purchases of less-expensive non-Intel
microprocessors, because they seek to slash the costs of producing low-priced PCs.
A Twinhead executive said that Intel will likely remain the major source of microprocessors for computer makers because it
is the undisputed leader of the industry.
However, the competitiveness of cheaper microprocessors from AMD and Cyrix is expected to gain steam, as low-priced
computers become more popular. Unless Intel follows the trend and begins selling less-expensive microprocessors, the global
microprocessor market is likely to encounter significant changes, the Twinhead executive said.
(Commercial Times, Taiwan)