January 29, 1998 (TAIPEI) -- After launching 440 LXR chipsets, Intel Corp. is setting its sights on the low-priced PC market, with its so-called "Covington" model product.

Using a 233MHz Pentium II microprocessor, the Covington is priced under US$1,000. This move is expected to result in a price war in the Taiwan PC market, industry observers said.

Intel executives based in Taiwan declined to comment on the Covington. Market talk concerning the new low-priced PC cannot be confirmed before Intel sets a comprehensive strategy, one executive said.

Because PCs priced less than US$1,000 accounted for 40 percent of the U.S. market as of the end of 1997, the low-priced trend has driven companies in related markets to take action.

Local PC makers are adopting the build-to-order strategy, while also implementing global logistics systems to sell their low-priced PCs while carrying minimum inventories.

Intel's latest move to partially move away from its high-profit margin policy and embrace the low-priced PC market will likely impact its competitors in the microprocessor sector, Advanced Micro Devices Inc. and Cyrix Corp.

(Commercial Times, Taiwan)