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Analysts Predict Dell to Use AMD

Posted by Zonk on from the grain-of-salt dept.

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."

40 of 196 comments (clear)

  1. Dear Lord, No! by gbulmash · · Score: 4, Interesting
    Please, no.

    Dell has become a poster child for crappy customer service. Do AMD fans want Dell dragging AMD's good name down with them? I'd prefer that Dell self-destruct on their own without pulling AMD into their vortex of suckage.

    - Greg

    --
    Start a happiness pandemic
    1. Re:Dear Lord, No! by Anonymous Coward · · Score: 5, Insightful

      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.

    2. Re:Dear Lord, No! by SchrodingersRoot · · Score: 4, Interesting

      At a minimum, don't you think that AMD processors would improve the reliability of Dell computers, while enabling (note that I did not say causing) lower prices? Especially in the low-end computing arena (i.e. Celeron processors)?

      And since most of us who use/recommend AMD processors now would know that any continued problems with Dells are not, in fact, due to AMD processors...

      Assuming AMD continues in the path they've been making, I would see this as a good thing.

    3. Re:Dear Lord, No! by kalislashdot · · Score: 2, Interesting

      We use Dell at work, excellent customer support, but we are business level where we get parts replaced in 4 hours. I have no idea on the Home side, but i hope it is good since my Father just bought a Dell.

      Also with people saying "I hope they die and go out of business" need to realize the more the better. Competion really helps inovation. Look at Microsoft, wiht barely little compention things go crappy. they STOPPED working on IE for gawd's sake. Now that Firefox is creating competion they fired up IE dev again. Also look at Mac OSX. I hated apple back in the System7 thru OS9 days. I think these OSes sucked. I would take my windows anyday. I am now jeolous of my Mac friends that run UNIX stuff right on their laptop and do not have to fight their OS. All becasuse they had to innovate to survive. And soon they will make MS start to innovate again. First step should be a UNIX/Linux kernel. That would help greatly.

    4. Re:Dear Lord, No! by jsight · · Score: 2, Interesting

      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.


      I'm actually not down on Dell (had some decent experiences with their consumer support recently), but this made me laugh!

      "skilled technicians"? Ie, the same ones that demand you reboot and run diagnostics to replace a bad drive in a HOT-SWAPPABLE RAID ARRAY! I would say their B2B support is not so great either.
      --
      Throw the bums out!
  2. In related news by A+beautiful+mind · · Score: 4, Funny

    Bush will decleare atheism.

    Paris Hilton will stop being famous.

    Microsoft will produce quality software

    Linus Torvalds will soon to begin working at SCO.

    --
    It takes a man to suffer ignorance and smile
    Be yourself no matter what they say
    1. Re:In related news by macrom · · Score: 5, Funny

      I was thinking more like :

      "In other news, Piper Jaffray analyst Les Santiago was last seen driving around New York City in a Ferrari F430 with the license plate 'THXAMD'."

  3. Just a trick by snwobird122 · · Score: 5, Insightful

    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.

    1. Re:Just a trick by the+eric+conspiracy · · Score: 5, Interesting

      Yes, but this time it is different because Dell is getting creamed in server space by HP Opteron boxen. Nobody wants Xeon.

      If Dell does ship AMD stuff I'd bet it is servers, not laptops or desktops.

    2. Re:Just a trick by stienman · · Score: 3, Insightful


      Yes, this is the usual course of action. However, Intel has recently obtained another largish customer, and Dell has measurably (not significantly, but measurably) less bargaining power in this situation.

      It is unlikely that Dell will use AMD processors anytime soon. The bulk orders they place with Intel lower costs enough that if they decide to offer both processors then they will likely end up paying the same or more - it won't decrease the overall cost of their computers, nor increase their revenue.

      As you pointed out, though, about once a year this noise is made, and both parties reevaluate their multi-year agreements and wonder if now is the time to move.

      -Adam

    3. Re:Just a trick by ppanon · · Score: 3, Informative

      With Opterons (what you would have in a dual server), the memory controller (aka North Bridge) is built into the CPU. So all that's left is the south bridge, which is generally less complex and less important for total system performance.

      --
      Laissez lire, et laissez danser; ces deux amusements ne feront jamais de mal au monde. - Voltaire
  4. Next Year's Story by Anonymous Coward · · Score: 2, Insightful

    "Dell likely will reverse course and begin selling computers with Advanced Micro Devices' processors"

    Seriously, how many times have we heard this before?

  5. instead? by mapmaker · · Score: 4, Informative

    In addition to Intel processors, not instead of them.

  6. Wait til aprils fool by bubulubugoth · · Score: 5, Funny

    Intel based mac.
    AMD based dell.
    IBM based Xbox.

    Whats next? ASP.net based Slashdhot?

    Hell is truly freezing...

    --
    Â_Â
    1. Re:Wait til aprils fool by AFCArchvile · · Score: 2, Interesting

      Solaris on Power.

      --
      "Ancillary does not mean you get to rule the world." --U.S. Circuit Judge Harry Edwards, speaking to the FCC's lawyer
  7. So if an Analyst says it... by LehiNephi · · Score: 5, Insightful

    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).

    --
    Help find a cure for cancer. Join the [H]orde
    1. Re:So if an Analyst says it... by udderly · · Score: 2, Funny

      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).

      When I told a customer that he would probably have to replace his 3-year-old entry-level Dimension because it wasn't enough computer to serve graphic rich files to his entire (18 workstations) network, he stammered, "...but, but, but it's a Dell..." as if by virtue of the fact that it had a "D," a slanted blue "E," and two "L's" it could defy the flippin' laws of physics.

      Arghhhh...is the end near yet?

  8. Not a chance. by mmell · · Score: 2, Interesting
    Intel would smack them back to infancy and spank them!

    Besides, I'd be more impressed if I could buy bare metal from their retail locations rather than pay the M$ tax. Getting AMD chips instead of Intel would just be the icing on the cake IMHO.

  9. AMD lags in on-chip cache capacity by mrm677 · · Score: 3, Interesting

    Intel's SRAM technology is pretty much an entire generation ahead of AMD's. Thus Intel can fit nearly twice as much cache into a given die area. Given this, its quite impressive that AMD's performance numbers are competitive (or better).

    However you often don't see cache-sensitive benchmark numbers. SpecINT and SpecFP fit and the stuff you see on the ./-type review sites (Tom's Hardware, etc) probably fit too. But give it something like TPC-C, does AMD's numbers lag here?

    1. Re:AMD lags in on-chip cache capacity by the+eric+conspiracy · · Score: 2, Informative

      Thus Intel can fit nearly twice as much cache into a given die area.

      They'd have to because cache is their remedy for FSB memory latency issues. AMD has the better answer with the integrated memory controller.

    2. Re:AMD lags in on-chip cache capacity by mrm677 · · Score: 5, Interesting

      They'd have to because cache is their remedy for FSB memory latency issues. AMD has the better answer with the integrated memory controller.

      Your integrated memory controller reduces DRAM latency, but it is NOT the answer to smaller caches!

      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.

      But Intel probably hasn't switched to on-chip memory controllers because of the uncertainty in DRAM markets and standards. Intel's volume is huge compared to AMD and by integrated an on-chip controller for a particular interface, they are placing a lot of eggs in one basket.

    3. Re:AMD lags in on-chip cache capacity by the+eric+conspiracy · · Score: 2, Insightful

      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.

  10. A reaction to Apple's no "Intel Inside" sticker by Anonymous Coward · · Score: 5, Interesting
    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.

    1. Re:A reaction to Apple's no "Intel Inside" sticker by kalislashdot · · Score: 2, Interesting

      As far as I know Intel gives companies a break if they use the logo. For example the CPU cost $20 each, but if you put our logo on the box it is $18 each. I know also that if on commericals if they put the logo and chime in they get a chunk of money to help pay for the commercial.

      So A: Apple pays more per CPU, or B: it was part of the deal years ago for Intel to get into Apple's pants.

      Intel, AMD I could care less who I buy. Who ever gives me more bang for the buck. Usually that was AMD in the past for me. I am glad Apple is moving to a more mainstream CPU since it will have more R&D behind it and lower manufacturing costs since they push more units.

    2. Re:A reaction to Apple's no "Intel Inside" sticker by i41Overlord · · Score: 4, Insightful

      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.

  11. Dell doesn't stock processors, not Dell model. by Anonymous Coward · · Score: 2, Insightful

    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.

  12. Cry Wolf by no_pets · · Score: 2, Interesting

    News articles about Dell using AMD processors is the tech equivalent of crying wolf. If Dell ever actually uses AMD processors nobody will believe it.

    --
    "A government is a body of people, usually notably ungoverned." - Shepard Book Quoting Malcolm Reynolds
  13. Comment removed by account_deleted · · Score: 4, Interesting

    Comment removed based on user account deletion

  14. Dell's always been Intel's best boy but... by 99luftballon · · Score: 2, Informative

    Intel lost the technology lead two years ago and hasn't got it back yet - and won't for at least another year. It's behind the game on dual/multi core and all the tech fixes in the world won't reverse that unless they can get Intel can get the 64 and 45nm fabs up and running fast. That said Intel can do volume in a way AMD never can in the short term. On the other hand Intel's put too much of its manufacturing expertise in Israel and if the Iran war kicks off those plants are vulnerable. Interesting time ahead.

    1. Re:Dell's always been Intel's best boy but... by Nom+du+Keyboard · · Score: 4, Insightful
      won't reverse that unless they can get Intel can get the 64 and 45nm fabs up and running fast.

      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."
  15. Re:"Would you like some facts with that?" by SilentOne · · Score: 2, Funny

    Your boatload of undeniable facts have convinced me Mr. Bush. Your sources seem to be most legitimate.

  16. Re:No. by StikyPad · · Score: 2, Informative

    Dell will not ship an AMD CPU.

    Really?

    --
    https://www.eff.org/https-everywhere
  17. Piper Jaffray? by eander315 · · Score: 2, Informative
    Ashok Kumar must have quit for a Piper Jaffray analyst to get away with saying that in public. Mr Kumar was an ex-Intel employee who famously made his entire analyst career bashing AMD and waving the Intel flag.

    (Sure enough, I Googled him and found that he moved to Raymond James a couple of years ago)

  18. Why haven't they been selling AMD? by Mr.+Droopy+Drawers · · Score: 3, Insightful

    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?

    --

    To Copy from One is Plagiarism; To Copy from Many is Research.

  19. Rephrased headline by Mike+Markley · · Score: 2, Insightful

    "Analysts make shit up, news outlets inexplicably pay attention."

    Film at 11.

  20. Finally realized what gamers want... by Zantetsuken · · Score: 2, Insightful

    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.

  21. Maybe, maybe not by NXprime · · Score: 3, Informative

    Right now there are SHORTAGES of AMD processors. How can AMD make so much more to satisfy the sales demands of Dell PCs? They can't and that's the hold up here. come back in a year or two when Fab 36 is up and running at full steam. However Dell is selling AMD processors separately for a while now which is awfully interesting in itself that doesn't get much attention.

  22. Re:What I don't get is... by Red+Flayer · · Score: 2, Insightful

    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.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  23. Re:Alienware? by LarkaanSoban · · Score: 2, Informative

    Alienware is a private company. Their corporate info

  24. Doesn't need to be under the "Dell" brand. by WoTG · · Score: 3, Interesting

    I read an idea on some forum (maybe here) that suggested that Dell could get the AMD chips that it needs a lot more easily for all parties by buying someone that specializes in Opteron based servers -- the company suggested by the poster was Rackable.

    I doubt that Dell will "tarnish" their relationship with Intel by directly selling AMD machines; however, a back-door approach does seem possible to me. Heck, they already sell the CPUs out of their parts store.