Neowin.net - Dell selling AMD chips. But why?

Dell selling AMD chips. But why?

Posted by Hurmoth on 11 November 2005 - 14:15 · 12 comments & 1741 views

Dell has quietly started selling processors from Advanced Micro Devices, AMD, that range in speeds from 2.0GHz to 2.8GHz with price tags starting at $219.27 for the Athlon 64 3500+ to $1,102.91 for an Athlon 57-FX. AMD chips are still not available inside Dell PCs, however, is this quiet move a small glimpse of things to come?

On Thursday, Dell reported its third-quarter earnings, which fell to $606 million, or 25 cents per share, from $846 million, or 33 cents per share, a year earlier. Dell ended the fiscal third quarter with $12.3 billion in cash and investments.

So with the loss in the third quarter earnings, Dell could be looking for a way to bring new customers into the fold. "Is this the first step in bringing in AMD systems to the Dell market?" independent analyst Roger Kay asked rhetorically. That will depend on how much Dell succumbs to customer pressure, he then speculated.

View: Dell Selling AMD Processors?

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#1 Posted by rIaHc3 on 11 Nov 2005 - 20:58: Intel intel....

This is very bad news for them.

(1 reply) #2 Posted by Galley on 11 Nov 2005 - 21:32: <snipped> Flame bait comment removed

Last edited by 28781 on 11 Nov 2005 - 21:56

#3 Posted by Yvo on 11 Nov 2005 - 22:23: Dell did this a few years ago too. It is their S&P section that sells these processors.

(1 reply) #4 Posted by DOCa Cola on 11 Nov 2005 - 22:26: i'd love to see dell building systems with cpus from both manufacturers

#5 Posted by mitodna on 12 Nov 2005 - 06:54: well, from AMD, they said Dell is buying from Distribution, not Direct from AMD, umm, and i think they do need some good chip, nForce4 will do, but then, the IGP thing also not included in nForce4, like Intel, they have GMA950 thing, in AMD, there isn't such thing from AMD directly

(2 replies) #6 Posted by Airlink on 12 Nov 2005 - 09:03: I'm just surprised that Dell took this long to realise that there's MONEY to be made selling AMD CPUs. What were they thinking sticking with Intel exclusively.

Even people who sell their souls to the devil try and back out of the deal eventualy. Why it took Dell this long to wake up and smell the missed oportunities simply baffles me.

I know why they stuck with Intel for their POS boxes (that's all about consumer trust & brand recognition), but why they refused to sell boxed or OEM AMD processors up till now is a mystery.

#7 Posted by Qumahlin on 13 Nov 2005 - 20:31: The reason they are selling them is due to the upcoming antitrust case of AMD vs Intel. AMD's case has ALOT to do with Dell and claims that Intel forces Dell not to use AMD processors.

This is a scapegoat move by Dell so that when questioned in court Dell can say they do sell AMD processors.

That is the sole reason behind Dell offering them and has been discussed in quite a few legal circles

#8 Posted by L337$c0u7 on 15 Nov 2005 - 13:33: Honestly i don't care if Dell offers AMD, I work with nothing but business class dells and they are fine. As for the scape goat thing...what does Dell care if AMD gets a slap on the wrist, its AMD NOT Dell. Even if Dell starts offering AMD based PCs it won't change thier market share in sales much. When buying a PC one can almost purchase a whole computer for about the same price as a dell at a Best Buy or Circuit City. What Dell Prides themselves on is thier service and support which Retail locations can't compete with. So weither your future purchases with dell are WINTEL or WINAMD who cares,... atleast if its affordable. Lets be realistic an average PC user won't ever beable to tell the difference...other than the sticker badge on the front of the case.

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