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Dell Inc., the world’s largest maker of personal computers, will use up to 20 million of microprocessors by Advanced Micro Devices in 2007, according to a media report citing sources among equipment manufacturers. If the information is correct, AMD’s share among Dell’s systems will be about one third.
Dell will reportedly use 20 million of AMD microprocessors between the Q4 2006 and Q4 2007, a news-story at DigiTimes web-site reads. It is reported that Dell will acquire 4 million mobile chips and the rest 16 million will be used for desktops or servers, with the majority of central processing units going into desktop computers, obviously.
The media report cites International Data Corporation (IDC) as indicating that Dell shipped 37.78 million PCs (including desktops, notebooks, ultra portables and x86 servers) in 2005, up 18.9% from the 31.77 million units that the company shipped the previous year. If Dell maintains its 20% annual shipment growth rate, then it will hit 45 million and 55 million marks in 2006 and 2007, respectively.
Provided that Dell ships 55 million PCs in 2007 and roughly 20 million of them will use chips from AMD, it will mean that AMD will be in 36% of Dell’s systems.
Even though a potential big contract with Dell is an indisputable success for AMD, the company is unlikely to be able to supply 20 million of CPUs for Dell while keeping to ship its chips to existing customers in existing quantities.
Earlier it was reported that analysts from Citigroup Research estimate that Dell has ordered much more Advanced Micro Devices’ processors for notebooks than previously anticipated. The investigators believe that Dell may acquire from 1.4 to 2.1 million processors from AMD this year. Even earlier, based on a report from Bank of America, it was reported that Dell had ordered between 1 million and 1.2 million desktop computers with Advanced Micro Devices processors and about 800 thousand notebooks from its manufacturing partners. The numbers from Citigroup reflect the number of microprocessors for mobile computers Dell can order from AMD, which means that they [numbers] do not necessarily contradict each other.
