On this day in 1994 Intel announced the first of two significant price cuts on its microprocessors that year. The price slash was designed to keep rival companies Hewlett-Packard and IBM from taking a larger share of the market. Months earlier Hewlett-Packard had released a competing line of chips at much lower prices, and the PowerPC chip made by Apple, IBM and Motorola was also shaping up to be a strong competitor. Intel had long dominated the microprocessor industry, and their move to cut down prices was another step to accelerate the use of Pentium-based PCs into the mainstream and maintain their dominance.
[Category: Open Source]