Celeron chips gain Pentium 4 edge

This month, Intel is expected to launch its first Celeron processor based on the Pentium 4 core technology. In keeping with tradition, the latest Celeron chip will follow a couple of technology steps behind the mainstream brand.

The new processor may lead to cheaper corporate desktop systems for office productivity software, but industry observers say it is primarily designed to compete with AMD processors for consumer sales.

Intel launched its Celeron line in 1998 as a low-cost version of the Pentium II processor for the value PC sector. The chip's development path has always trailed that of Intel's leading desktop brand, with Celeron chips either having a slower bus speed or a smaller Level 2 cache.

Until now, corporates have largely ignored the Celeron, choosing instead to gain better performance by investing in the Pentium brand.

The new Celeron is expected to appear initially at a clock speed of 1.7GHz, according to industry sources. This is higher than current Celeron chips based on the Pentium III architecture but lower than the latest Pentium 4 chips. Sources also suggest that the processors will have just 128kB of L2 cache, compared with 512kB on current Pentium 4 processors.

A 1.8GHz Celeron product is reportedly planned for the fourth quarter, with 1.9GHz and 2GHz versions due to arrive towards the end of the year.

Where Intel expects the new Celeron to really score is on price. Sources say the 1.7GHz part is likely to cost about $83 (£57) in quantities of 1,000, comparing favourably with a Pentium 4 of the same speed at about $130 (£89) and considerably cheaper than the current top-of-the-range 2.53GHz chip, which was announced last week at $562 (£383).

Intel views the Celeron sitting firmly in the value segment of its plans, but the introduction of Pentium 4 technology will bring its performance much closer to the chipmaker's flagship product. And companies that have validated the Pentium 4 to replace ageing desktop systems will have the option of adopting the cheaper chip "ready validated". But the jury is still out on whether the Celeron is likely to make serious inroads into corporates.

One IT manager from a high-street bank told IT Week, "In real terms it makes little difference if you're only going to save about £30 on a new system. If [companies] have standardised on the Pentium 4, I see no reason for them to change." However, he added that the lower price of the new Celeron processor and the option to upgrade to the full Pentium 4 in the future might tempt smaller businesses.

A senior manager at a UK system builder suggested that the Celeron presents a bigger threat to Intel's rival, AMD. "Forget about [AMD's] Duron, just look at the pricing of the 1.7GHz Celeron," he said. "It's almost exactly the same as the Athlon PR1700. What does that tell you about Intel's intentions? And I don't think it will score just in the small and medium business market - a 1.7GHz Celeron will provide you with more than enough power for nearly all office applications."

While the Pentium 4 Celeron may offer corporates some scope for savings, Intel's real intention appears to be to dent Athlon sales. Intel has always maintained that it is the value-range Celeron, not the Pentium brand, that competes with AMD's products.

The current Celeron processors, which are based on Pentium III technology, top out at a clock speed of 1.3GHz. AMD positions its Duron chip - a cut-down version of the Athlon - against the Celeron.

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