The last non-Intel processor HP used was the AMD K-5. On the other hand, AMD chips are mostly being used in sub-$1,000 PCs, which generally bring less profit to chipmakers, according to McCarron. The price of the HP computers indicates that AMD is selling the chips to computer manufacturers at less than $100, said Ashok Kumar, semiconductor analyst at Piper Jaffray, far below the posted price of $229. Further, the company will begin to face stiffer competition in this segment when Intel releases its first version of the Celeron chip with integrated high-speed memory in the fourth quarter, added Kumar. Code named "Mendocino," the integrated versions of the Celeron chip are expected to perform far better than current versions of Celeron, according to most analysts, and will run at 300 MHz and 333 MHz. And, if history is any guide, the price of these chips will begin to approach $100 not long after launch. (Intel is an investor in CNET: The Computer Network).