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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.
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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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.