With the slashing of its CPU prices earlier this week, Intel and rival Advanced Micro Devices Inc (AMD) paved the way for consumers to get better computers for their hard-earned cash.
Last Monday, Intel cut prices on its Pentium 4 series of CPUs and AMD followed suit immediately with similar price cuts, bringing the cost of 1GHz of computer processing power down to street level. Retailers in Taiwan say the lower prices are already in effect.
In tandem with the launch of its new 2GHz microprocessors, priced at US$562 per chip, Intel slashed prices on slower Pentium 4 chips, up to 1.5GHz, to US$133. In response, AMD also cut prices on its top chips, to US$115 for its 1.1GHz model and US$130 for its 1.4GHz Athlon processor.
Such price wars add up to significant savings for the consumer as computer CPUs or microprocessors, are the brains of a computer as well as its most expensive component.
Executives from Acer Sertek Inc (宏科) said the new Pentium 4 prices enabled them to cut the cost of 1.4GHz and 1.5GHz-based computers by NT$3,000 to NT$4,000 immediately. Prices on slower computers have also been cut.
To get the best deal on a new computer, a few information technology managers said its essential to consider your computer needs. They also said to buy extra RAM memory, and to be certain to buy a computer that can be upgraded.
Dan Weber, information technology manager for a group of local companies in Taipei, said the average home and office user who relies on a computer for e-mail, Net surfing and word processing does not really need 1GHz of power, saying that a computer running half the processing power would suffice.
"Why would a user need a 1GHz chip? The same reason people in Taiwan buy a sports car with a V-8 [engine], it impresses people, it sounds good, but you can't really use it unless you are a power user or a gamer," Weber said.
"Why would people want to buy a 1GHz chip? It's reasonably priced and will be supported for the next few years," he added.
The only programs a person really needs over 1GHz of computing power for are playing games and doing other high-power intensive work, like video editing, design work, or database creation.
Weber edits video and photos on his computer, which runs on a 300MHz Pentium 2 chip, far slower than 1GHz. He says more important than the CPU is memory, or RAM.
Most shops today add 128 megabytes (MB) of RAM to the standard computer, but as far as Weber is concerned, a PC should have 512 MB or more. Lack of RAM can slow down any computer, no matter how good the CPU. RAM, or random access memory, is short term memory that holds information until the computer is turned off.
Since technology moves fast, it is important to buy a computer that is easy to upgrade for the next few years. This is the strongest selling point for over 1GHz Pentium 4 and AMD Athlon chips, Weber said.
These systems are new, and the components to support them will be around for the next few years, making them easy to upgrade. In contrast, a consumer purchasing a Pentium 3 system might get a lower price, but may find upgrades difficult since Pentium 4 components are already taking over space on store shelves.
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