Computer Prices Will Continue to Fall

School administrators looking for deals on new computers can expect that prices on super-fast PCs will continue to drop this year. The two leading computer chip manufacturers, Intel Corp. and AMD, each are coming out with advanced new chips that will be competitively priced, the companies say, and this will enable computer makers to offer more computing power for less money.

Intel will offer a new version of its Pentium III chip with speeds of 1.1 gigahertz late this summer. AMD will offer a chip with the same level of performance early in the fall.

With these new chips coming to market, both companies are cutting the price of their soon-to-be second-best chips, which already are lightning-fast. Prices for these chips, such as slower versions of the Pentium III, dropped as much as 24 percent in June.

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