Dell to use AMD cpus in 2006?

By Justin Mann on January 10, 2006, 12:40 PM
Every year or so, someone toys with the idea of Dell using AMD processors in desktop and even server systems. A little more sporadically but still from time to time, Dell will tease AMD and provoke Intel by “considering” using AMD processors as a viable option in their lineups. Of course, it's always been just talk – at least from our standpoint. The rumor mill is churning again though, with analysts saying 2006 may be the year for Dell to start using AMD processors.

Santiago also wrote in the report: "Our conversations further indicate that Dell's sales force is demanding Opteron-based server offerings to be able to better compete in the market."
At this year's CES, Michael Dell mentioned, though in brief and not as a press release, that adding to their product line with AMD is a possibility. Of course, AMD would probably embrace this more than anyone. But, it's still just talk, and talk it has been for a long time. Perhaps with the rage over the Athlon64 and impressive gains with the Opteron, Dell is seeing that AMD is a safe bet.

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vigilante said:
"Dell is seeing that AMD is a safe bet"WT?In what way did Dell ever see AMD as NOT a safe bet? Probably not because of AMD, but because of Intels threats perhaps?Or maybe it's Dell THEMSELVES that are not a safe bet? Can't stand that company. But maybe that's because I have to fix their crap day in and day out. Never ending flow of Dell junkers with proprietary parts gone bad.Oh when will people see the truth?
seanp789 said:
Dell already has AMD chips in house that they sell separately. I spoke to AMD reps at the last tech tour and even though it had made sense for Dell to build AMD for quite some time now they simply wont make the switch because intel is easier to market and they get plenty of kickbacks from intel. Intel would give away free Cpus before they let amd and dell fornicate.Intel is supposed to have a new platform that is more competative per watt by 3Q 2006. Its cheaper for dell to wait it out than to reorganize the company to start selling AMD.
asphix said:
I wonder if the whole happenings over the summer 2005 had any effect on this possible decision. With AMD accusing Intel of preventing possible sales through malicious means, maybe now that the companies are under a closer eye they cant act as freely.Or maybe its that enough of the corporate/mainstream consumers have began to accept AMD as a viable compeditor. Prior to the past couple years AMD's largest customer base was in the technologically inclined and gamers.
PanicX said:
"Dell to use AMD cpus in 2006?"I'll believe it when I see it. Until then its all hype and marketing BS. The only point at which Dell will add AMD to the product line is when Dell sees AMD as a better sell than Intel. Why would they risk their highly lucritive Intel deals for anything else but a guarantee of bigger profits?Which by the way is exactly why [url=]AMD is suing Intel[/url].
exscind said:
Well, I used to believe Dell will never use AMD in any sort of way because Intel hugs (with presents) and kisses (with cheap deals) Dell everyday. This rumor, or rather, analysts' "expert" prediction, is most likely derived from Dell selling AMD CPUs in its small business section.Link:[url]
But I agree, I do not think Dell will start selling computers with AMD CPUs unless Intel's new line of products are just utterly poor (which is surprisingly not the case for their new items), or Intel stops hugging and kissing Dell. Intel knows how much business Dell gets every year; Intel is going to continue with its sweet-talks to Dell as long as Dell does well in selling computers.
Soul Harvester said:
[b]Originally posted by PanicX:[/b][quote]"Dell to use AMD cpus in 2006?"I'll believe it when I see it. Until then its all hype and marketing BS. The only point at which Dell will add AMD to the product line is when Dell sees AMD as a better sell than Intel. Why would they risk their highly lucritive Intel deals for anything else but a guarantee of bigger profits?[/quote]That's exactly the attitude I got when I wrote that up this morning. As I mentioned, every year we hear more rumors about it being done. I believe the lawsuit has had an impact on this, though, and I believe it will either greatly accelerate Dell/AMD or completely obliterate any chance of it happening, ever.Either way.
Vaerilis said:
Using AMD chips would be common sense, but the amounts of money Intel probably forks over to Dell to "prefer" their CPUs must be significant. However, this is only speculation.The other possibility is that Dell can still cash in on the ignorance of the general public (those with little or no computer related experience). Many still believe that AMD CPUs have the same weaknesses they had a decade ago (weak FPU, overheating, the list goes on). It's suprising to see how many regular users refrain from buying an AMD CPU just because it's made by AMD. I still have a hard time believing my ears when a friend of mine says that although I recommended him to get an A64, the salesperson at the store successfully persuaded him to get a Celeron/Prescott instead, because *insert random bogus reasoning*. Regarding the fact that Dell is selling certain AMD CPUs: I think that they've realized how much they could make by listening to what the users (those with some experience or general knowledge of the performance of the AMD CPUs) have to say. So they gave in to their customers and it resulted in bigger profits. Smart move.However, if Dell started selling AMD setups, it would not only question their past motives, but also make a big portion of the general public lean towards other companies' products. Dell would lose some of its exclusive, trustworthy, regal nature.This sounds messed up to some of us, but there are people who think about it this way.Dell machines would probably lose some trust and it is unsure if the newfound trust from those interested in buying AMD-based computers would offset the negative impact on their sales (probably yes, but the market is never easy to predict).Before telling me that the reasoning above is plain stupid, consider that people are not exactly rational. Would Dell be as popular as it is in case people cared more about what they purchase? The other companies often offer worthy alternatives (better performance at a lower price), like the gamer/performance oriented Falcon Northwest. They have some great machines, but that's not what the general public wants. A lot of parents just buy their kids (or themselves) a Dell to play games on.
asphix said:
Goes to show the effect a truely bad product line can have on a companies name.You make some good points, but you cant blame people who choose to stay away from AMD due to bad experiences.I was a huge AMD advocate years ago, starting with my first 600mhz AMD CPU moving up to my last which was a 2100+. I owned several of those AMD chips in the 1200-2000 mhz range when they had all sorts of problems and it was enough to keep me away from their products for a good 3-4 years. Now I accept that their products have changed and my next CPU may be AMD unless the new intel chips persuade me other wise.When it comes down to it, I prefer intel. While their chips arent always king of the kill in terms of performance or affordability, I know exactly what to expect from them: A processor that works reliably.AMD has been doing a great job since that poor batch of products and I do accept and commend them on that. Its also the reason why for my own purchasing needs I will seriously consider their products for my next major upgrade. But old habbits die hard, and corporate and commercial purchases are what push the majority of the money in the computer industry. In the IT and corporate world, reliability and knowing the product will work is infinitely more important than saving a buck or squeezing an extra bit of performance.You cant really fault someone who chooses what is known to them as a reliable product over something that has proven itself in the past to be unreliable. You can only hope they decide to give it another chance later on.If someone touches a hot stove and burns their hand, would you blame them for not wanting to touch it again in the future even if its off? Its only human nature and instinct to react based on personal point is, in my opinion AMD had to prove it was a solid product again: which they have. To many IT departments and companies its the same. Though I do agree that Intel keeps companies like dell on a leash through incentives. Its taken a while for AMD to prove itself, but now that it has been doing so for a while I am hopeful to see some change and more acceptance of their products throughout the industry.[Edited by asphix on 2006-01-10 14:25:10]
Race said:
AMD is becoming a much bigger player than many people thought, with their increasing market share. Their stock certainly reflects that, having doubled in the last six months. At this point, Dell may feel they need to do this.On a personal note.....Having been a steadfast Pentium user, I'm going to take a closer look at AMD for my next system.One probably won't be a Dell. Trying to upgrade their proprietary components (ie...power supply, motherboard, and even their interior case design), not to mention their questionable tech. support, drove me away.In my opinion, Dell needs to make some changes in order to hold their position as a top PC supplier.
Cartz said:
I don't see why Dell wouldn't at least offer the option of having your system built with an AMD chip instead of an Intel.They could even keep Intel happy by charging a premium to have your system switched over to an AMD processor. Odds are the customer would make back that premium in power savings eventually.I would guess though, that Dell's resistance to switching over to AMD has as much to do with their current processes and practices then with Intel's threatening behaviour. I imagine it would be quite a task to switch an assembly line from manufacturing Intel based systems to AMD ones.Of course, the actual process of assembling the system wouldn't be very different, but managing supply chains, not only for the AMD Cpus, but the mainboards to support them, would be a task in and of itself.I'm an AMD man, have been since my first Athlon XP 1700+, they've (for me at least) always been rock solid reliable, cool, fast, and best of all - inexpensive. As long as these qualities aren't comprimised when/if they start providing for Dell, I wish them all the best.
cyrax said:
With money to be made, i think dell will make sure amd keeps to the shipment quotations. Lets see if this raises dell prices, or drops amd prices
mentaljedi said:
Everyone is suing everyone. And teh lawyers arejust loving it. At this rate, if you want to be a millionaire, forget trying to build a company and become a lawyer that sues peeople and you'll make millions!
PUTALE said:
mmh, I guess it's time that dell start sell amd product. After all, amd is not that bad cpu:). I think Dell is being somehow forced to sell amd cpu as people are demanding it.
fury said:
[b]Originally posted by PanicX:[/b][quote]"Dell to use AMD cpus in 2006?"I'll believe it when I see it. Until then its all hype and marketing BS. The only point at which Dell will add AMD to the product line is when Dell sees AMD as a better sell than Intel. Why would they risk their highly lucritive Intel deals for anything else but a guarantee of bigger profits?Which by the way is exactly why [url=]AMD is suing Intel[/url].[/quote]Oh, this is going to be beautiful. Clash of the titans... Can't wait :D
xerowingsx5k said:
Intel isn't doing so well against AMD as tests like these [url]
lnav[/url] prove it. AMD chips delivery more performance and use less power than Intel chips. AMD however, needs to promote their company more as Intel has, especially through advertising. If AMD can't get the word out to the public that their chips are better than Intel's, then they won't be seeing themselves in Dell computers because Dell wouldn't want to risk it.
nathanskywalker said:
AMD is the way to go!!!
zachig said:
WOW. This is really great news for AMD. I hope that AMD will rule the CPU market (both Desktop and Mobile) in a few years from now.
MonkeyMan said:
Well, Dell, for sure, will have increased sales with AMD products, because AMD is a very sucessful company. Both Dell and Intel are both great companies, but Dell should go with who they are comfortable with, compatibilitywise. Anyway, good luck Dell, and I hope you continue to be successful in the future.
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