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Dell to use AMD Chips in Desktop PCs
bain writes "MarketWatch reports that Dell has decided to use AMD chips in its Dimension desktops due next month. The move to use AMD chips signals a break from its long standing reliance on Intel chips. The information slipped out of Dell's quarterly earnings report." From the article: "Before the announcement, which had been speculated in the financial community and the press, Morgan Stanley analyst Mark Edelstone wrote in a research note: 'It should have a negative impact on Intel and it could be a large offset to the expected benefits from Intel's restructuring efforts.' AMD, which has become a more formidable competitor to Intel, has been expanding its manufacturing capacity, a sign that it expects to be shipping more chips. Its chief goal is to put itself in position to supply 33% of the global microprocessor market by 2008. "
Although the article mentioned that AMD is increasing its capacity to produce chips, I have to wonder how supplying Dell is going to impact the little guy. Are there enough chips to go around for everyone? Will NewEgg and others start having shortages? The Enthusiast has always been in AMD's corner. With Intel releasing its new processors that run circles around AMD offerings and the potential for there to be shortages in the after-market, I have to wonder if AMD is trading one customer base for another.