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Analysts Predict Dell to Use AMD
An anonymous reader writes "CNet reports on an analyst's prediction that Dell will begin using AMD chips, instead of their much-touted Intel processors." From the article: "Dell likely will reverse course and begin selling computers with Advanced Micro Devices' processors, Piper Jaffray analyst Les Santiago predicted Tuesday, sending the chipmaker's stock up 4 percent in midday trading."
Once or twice per year, Dell themselves hint that they *might* start using AMD chips. I think they do this just to get good pricing from Intel.
"Dell likely will reverse course and begin selling computers with Advanced Micro Devices' processors"
Seriously, how many times have we heard this before?
So if an Analyst says it, it must be true? C'mon, anybody can state an opinion that Dell will go with AMD, or it won't, but where's the proof?
Dell will begin selling computers with AMD processors in them when it makes good business sense to do so, i.e. will make them more money. I wonder sometimes if AMD's lead over Intel over the past couple years has had any effect on Dell, considering the brand awareness of Intel, very cheap low-end computers by Dell, and inherent conservative-ness of major corporations (read: customers).
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The article states that Dell is buying up AMD processors for a 2H06 launch. That is not how the Dell Model works and this analyst obviously doesn't know any better. He probably gets paid more than you or I too to come up with this and affects stock prices just the same. He cobbled together a bunch of disparate rumors and proclaims his this must be true.
Truth is, if Dell went AMD, they wouldn't pay for the processors until they were manufactured.
I have had bad experiences with every major corporation in America / Japan. Whether it be Toyota, GE, etc. Especially if it is "consumer" grade. People don't understand that profit margins on things like 50dollar DVD players and 500 dollar laptops are so slim that to get someone on a phone call for as many times as some people like to call becomes a cost prohibitive business. Dell excels in B2B where you have programs in place where IT shops can order their own parts under warranty and they have access to skilled technicians that are paid by the higher costs of the warranties and hardware / contract.
Back when an average system sold for three thousand dollars and all you had to worry about was config.sys and autoexec.bat and Windows 3.1 or DOS 6.22, you could pay an American tech 15bucks an hr to hand hold consumers and still have decent profit in place. But, as the computers got more powerful and the applications they performed began to vary widely and the advent of the internet and the driving down of systems to 300bucks expecting the same level of support is hard to deliver. This is why Dell has launched other services and fee based alternatives.
Just my 2 cents.
>Nobody wants Xeon.
Except the people over at The Pirate Bay, who are happy to take donations and flush them down the toilet.
Yeah, you won't see me donating.
Belief is the currency of delusion.
That's not Intel's problem. AMD has a better design with a low latency integrated memory controller that Intel's bus system can't match. And Intel keeps pushing out the roadmap for when their chips will match this rather crucial design feature.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
And it isn't entirely clear that on-chip memory controllers are the way to go. For one thing, a northbridge allows the pin bandwidth to be used for both DRAM accesses and inter-chip sharing communication.
Maybe for 2 way. But 4-way and up FSB bus contention is a clear loser.
But Intel probably hasn't switched to on-chip memory controllers because of the uncertainty in DRAM markets and standards
Maybe, but they are going that way in 2007.
Seems til today (macworld) Dell always had the sweetest sweethart deal from Intel; but when Jobs gets to announce that they're exempt from Intel's branding campaing - and God (Jobs) knows what other concessions Intel had to give Steve to win them from IBM, I bet Dell is pretty pissed.
It'll be fun to see the new wars brewing between the big PC players - Dell & Intel using Linux against Microsoft. Dell & AMD using AMD against Intel. t. Microsoft using IBM (Xbox) against Intel. Intel&Apple using MacOS against Microsoft. The computing industry's starting to get fun again.
Apple is a minor player compared to Dell. Look at the volume. You can rest assured that Dell gets a better deal than Apple.
Besides the conspiracy theories (Intel won't offer as good a deal on their parts), what is the reason why Dell hasn't offered AMD up to this point?
I'm told there's some personal animosity between the two companies?
Anyone have some insight based on fact?
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Film at 11.
even if Dell sucks, it means they finally smartened up and realized that theres a whole plethora of gamers out there who use AMD chips exclusively. until now, it seems like Dell has focused on selling to schools and businesses, which are HUGE market areas, but gaming is easilly bigger, since there are so many gamers and the top of the line parts demanded are insanely more expensive, they make more per computer. Dells current line of what they claim to be gaming machines were crap and they realized people wouldnt buy them unless they actually used good parts.
Idle spec previously versus trusted (by some) analyst today. Piper Jaffray is no joke, nor is it a bunch of bloggers. Stock price jumped 5.05% today, has only lost .05% in after-hours trading (4% gain at time of article, I guess) -- that in itself is news, it represents a shift of almost $700 million into AMD's market cap.
That's a lot of dough.
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