Rumours about possible usage of processors by Advanced Micro Devices by Dell, the world’s largest computers maker, recently emerged once again when an analyst said that Dell might be stockpiling AMD chips to gear up for a large scale launch. Other rumours suggest that Dell’s recently unveiled XPS 600 Renegade will sport either AMD’s or Intel Corp.’s processors.
“We strongly believe that Dell will start AMD-based system shipments as early as (the second half of 2006),” Piper Jaffray analyst Les Santiago wrote in a report. He based his view on conversations with unnamed sources in the PC component supply industry, press reports indicating Asian designers are working on AMD-based systems for Dell, AMD inventory shortages suggesting Dell is purchasing the chips and other factors, CNET News.com reports. Dell declined to comment.
In November 2005 several wires reported that Dell had informed its Taiwan contract makers, such as Asus, Foxconn and Quanta, of plans to develop devices based on AMD’s microprocessors, and these suppliers are awaiting orders for global shipment, it is reported. Foxconn, which belongs to Hon Hai Precision Industry Co Ltd develops AMD-powered servers, ASUS designs mainboards and Quanta Computer develops notebooks based on AMD microprocessors. Dell called the information “rumours” and speculation.
Dell has been historically rejecting AMD processors citing the world’s second largest x86 microprocessor maker’s inability to supply its chips in mass quantities. Indeed, Sunnyvale, California-based AMD has been suffering from chip shortages for years being unable to fulfill the demand towards its products due to various reasons.
But while production capacities of AMD cannot be compared to Intel Corp.’s, who is rapidly transitioning to 65nm process technology to be able to ship even more chips, microprocessors manufactured by the smaller maker have been praised by analysts and press for their performance and relatively low power consumption.
But while the analysts predicted that Dell would start using processors by Advanced Micro Devices in the second half of the year, the Q3 is a timeframe when Intel is expected to release its new processors code-named Conroe that are projected to offer increased performance amid moderate power consumption on the desktop. This may undermine AMD’s abilities to compete in the desktop market, but the company may sustain its advantage in the server market for a few months from then before Intel releases its next-gen server chips.
Another rumour spread in a forum by an allegedly Dell employee is that the computer giant will release its gaming PCs running AMD processors this spring and the first of such products will be the XPS 600 Renegade system equipped with four graphics processing units.
Back in 2004 approximately 19% of Intel’s revenues came from Dell and about 16% from HP. No other computer makers accounted for more than 10%.
Comments currently: 6
Discussion started: 01/11/06 09:58:34 AM
Latest comment: 03/24/06 05:27:38 PM
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Everything from the reviews, editorials, poll's, and especially the news, no one does it better.
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01/11/06 09:58:34 AM]
I think it's quite unlikely. Frankly Dell just isn't that brave as a corporation. That's not altogether bad, they grew up on a conservative customer base so it's a natural evolution path for them. But that leaves them quite unlikely to take risks.
And then, moreover, AMD doesn't really need them. Sure it would drive up AMD volume "some" but there are plenty of AMD machines from HP and other vendors who are capable of delivering quite a quantity of machines should the market demand it.
AMD is going to beat Intel to the punch in 2006, imo. DDR2 and a solid laptop solution featuring Nvidia chipsets should do well for them. Execution will be there worry, as it always is. But if the new sockets provide an upgrade path to 65nm chips later in the year or early next year that will solid proof of a "good" current product, and a good upgrade path to the future.
Intel "may" offer Merom and Conroe this year and they may not. They've been late before, and they've never really been early with chip designs. Process designs they've delivered early but not new cpu's. It'll be a good chip, but frankly even Yonah isn't the godly chip we were all talking about last year. Neither was Intel's dual core chips. So how many products do you tell the market to "wait it will be REALLY good on the NEXT one" before the market stops buying it. Rumours are that Merom consumes too much power and thus it won't achieve high speeds at launch. They promise another drop to 45nm will fix this, but what kind of an upgrade path has Intel ever managed to keep in the past 2 years? They are not a dog, don't read this that way. But they have some issues and those issues are building now over several years. The market may just get fed up and leave them. They may not. Have to see on that.
This gives AMD continued opportunity to offer products the market wants, but can't get from Intel. Do they take what they consider the "chance" and try AMD? I'm betting quite a few more in 2006 will take that risk, as it will be perceived to be less of a "risk" than of a "why don't we just give this other machine a try" kind of thinking. IF, and only IF, that happens, you may see yet more surging in AMD sales. Intel's last holy ground is the mobile market. It remains to be seen if AMD can make grounds there.
2006 will be one of two things: AMD gently fading to black, or Intel realizing that it will have to execute in a nearly unparalleled way to keep on top. It'll be a fun year to watch for sure.
Option three (almost forgot) is they both stumble on execution and the current status continues until 2007...
01/15/06 10:54:13 AM]
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