Dell Inc., the world’s largest maker of personal computers, said in a conference call with financial analysts that it would release desktops based on microprocessors from Advanced Micro Devices in September, which may mean that the company is targeting back-to-school season with such machines. In addition, the firm said it would use AMD Opteron processors in 2-way “enterprise” servers.
“Today we took a step forward in this effort with the addition of AMD desktop processors for consumers, which will be available in September. We announced Opteron 2-socket servers for the enterprise, which we will introduce later this year,” said Kevin Rollins, chief executive of Dell.
The company believes that AMD processors in desktops and mainstream 2-way servers will help the company to broaden its product lineups, thus addressing new markets and therefore increasing the shipments.
“The addition of AMD on Dimension desktops and two-way PowerEdge servers will give us additional product breadth and cause visibility as we move through the third and fourth quarters,” said Jim Schneider, chief financial officer for Dell.
When asked about the reasons for introducing AMD-based desktops, noting possibilities to lower the costs and requests from customers, chief executive of the company admitted that Dell has not been the part of growing AMD market and that his company wants to capitalize on this growth.
“I would say it was a third reason too. As we announced with our server product line, I think one reasons that we have been possibly slowing down and not gaining the share we had in the server product line is we didn’t have all the products that the customers wanted. […] We have been out of the AMD technology market all along the growth of that business. So technology is a big one. Customers obviously [want] that technology, so we listen to them now. Then the third issue is the overall cost issue. It benefits us and our customers by having multiple suppliers, and so that is what we’re doing,” Mr. Rollins said.
Earlier this month it was reported, based on claims made by anonymous Dell executive and an official from AMD, that Dell would release desktops and notebooks with AMD inside by the end of the year.
Dell has always relied on chips by Intel Corp. in its computers citing weak demand for microprocessors by Advanced Micro Devices by its clients, AMD’s inability to supply enough chips and immaturity of AMD technology.