New Crop Of Low-Cost Pcs Doesn’t Have Intel Inside

Major computer makers Tuesday introduced new lowcost PCs that offer more processing power than previous models, mainly by using microprocessors made by rivals of chip giant Intel Corp.

Compaq Computer Corp., the largest PC company, unveiled 15 new Presario models, half of which run on chips made by Advanced Micro Devices Inc. and Cyrix Corp. Previously, only Compaq’s $800 PC, its lowest-priced model, ran on a non-Intel chip.

IBM Corp. Tuesday added two models to its existing line of four low-cost Aptiva personal computers, all of which run on non-Intel chips. Now, IBM’s least expensive PC is about $900, down from $1,000.

By selling lower-cost chips, AMD and Cyrix aren’t expected to unseat Intel anytime soon. Intel’s microprocessors are the brains in about 85 percent of the world’s personal computers, and are still used in some sub-$1,000 computers. Indeed, Hewlett-Packard on Monday introduced a new $800 machine that runs on Intel chips.

However, AMD and Cyrix are gaining share in the hottest part of the PC market. Since major makers came out with sub-$1,000 PCs last February, the machines have grabbed 41 percent of the market, according to Dataquest Inc., a San Jose, Calif.-based research company.

Intel isn’t sitting idle. The company plans to introduce less expensive versions of its Pentium 2 chips more suited to sub-$1,000 machines in the second half of the year.