By offering a low cost yet powerful alternative to the current ruler of the "under $1,000" PC (AMD), Intel can basically buy their own marketshare by offering tier-1 OEMs a price that's too good to refuse.
Based on the prices we've seen so far, we believe that the S370 versions of the Celeron 366 and 400 will be making their way into many thousands of big OEM machines, all plastered with wonderfully co-op financed "Intel Inside" stickers.
Unlike some of the other tier-1 OEM CPU solutions in 1998, (Cyrix's horrible MediaGX CPU comes to mind) the S370 Celeron CPUs won't make a buyer feel that they've been had or duped when they try to fire up that first game of Quake2. The Celeron's performance level is everything that there big-brother Pentium 2 CPU's is, only at a reduced price tag. It really is a win-win situation for the buyer, as many will be happy that they did a little research and went with a machine based on the new Celeron instead of an alternative choice.