Intel must be feeling the pressure from the AMD / Transmeta axis. From ZDNet:
It will begin this month by launching what it has described as an "ultra-low power" mobile Pentium III chip.Transmeta will respond with faster chips that consume even less power.
The 500-MHz chip originally had been planned for introduction in the second half of the year but was moved up in direct response to a perceived threat from Transmeta (Nasdaq: TMTA), Intel representatives have said.
Intel also plans to introduce an ultra-low-power 500-MHz mobile Celeron chip this month for around $100.
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