Packard Bell NEC Will Use Cyrix Chips

May 21, 1998 (12:00 AM EDT)

Packard Bell NEC will announce Thursday that it has agreed to incorporate microprocessors made by National Semiconductor's Cyrix division in a new PC lineup that ships this month, market sources said.

Packard Bell NEC (company profile) officials have declined to comment on the prospect, first reported in Computer Retail Week on May 11.

The inclusion of Cyrix chips is a significant move, given Packard Bell NEC's long-time support of Intel's microprocessors. Packard Bell NEC used Intel chips exclusively for at least the past eight years, and its relationship with Intel had been a source of frustration among its rivals. The agreement to use Cyrix chips appears to be an indication Packard Bell will compete more seriously in the sub-$1,000 PC market, currently dominated by PCs using non-Intel processors.

Five of six systems priced below $1,199 are being considered for either Cyrix's MediaGX or MII chips, market sources said. The PCs are expected to be available later this month and will offer a Windows 98 upgrade coupon, according to sources. The lineup reportedly consists of a MediaGX 233 MHz at $699; a Cyrix MII-266 MHz at $799; an MII-266 MHz with 48 MB of RAM at $899; an MII-300 MHz at $999; and an MII-333MHz at $1,199.

At prices higher than $1,199, Packard Bell plans to market a Pentium II 300-MHz system for $1,599 and a Pentium II 333 MHz for $1,999. It will also offer an Intel Pentium 233 MHz with MMX for $799.