Report: Dell signs deal with AMD for millions of chips for full range of desktops, notebooks

A recent meeting at Michael Dell’s house in Texas “marked the signing of a pact between the one-time Intel-only computer-maker and the upstart chip maker,” Theo Valich reports for The Inquirer. “And it appears that AMD just pulled biggest coup in the history of chippery, whatever it turns out in sales results.”

“The event was concluded with a deal about ‘No Leaks’ policy, but the magnitude of the news was such in both companies that there was no way it wouldn’t get to lower segments of the company,” Valich reports. “According to our molars, Dell’s AMD-powered offerings will include the full range of desktops, notebooks, workstations with a clear marketing focus on student notebooks for an initial Back-To-School line-up.”

“The computers will be advertised as “Windows Vista Premium Ready”, and the graphics mix is likely to come from Nvidia side for now,” Valich reports. “If you’re still wondering why a market-share leading company like Dell might take the risk and go the competitor’s route at the time when new marchitecture from its primary partner is probably set to rock the world, there is only one simple reason: Supply.”

Valich reports, “Dell can get Conroes and a great share of WoodCrests and take a ticket to stand in line for Meroms, which are scheduled to be split between Apple and Lenovo. No other manufacturer will get anywhere near the volumes of these two, and Dell just does not like to be on a short leash. Especially if it spends valuable TV air-time and paper ads on products that look likely to be put on a back-order.”

Full article with more details here.

MacDailyNews Take: AMD is about to get their collective arse handed to them by Intel. Dell just hopped off Secretariat for a ride aboard a 50-1 nag that, without a surprise injection of Lasix, could soon be bound for the glue factory. Luckily for Dell, the vast majority of their customers will never know the difference.

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Related articles:
Independent benchmarks: Intel Core 2 Duo (Conroe) 2.67 GHz – June 22, 2006
Apple Mac Mini brain replaced with 2.16GHz Intel ‘Merom’ Core 2 Duo and benchmarked – June 09, 2006
Apple chose well: Intel poised to take massive lead across the board over AMD – June 07, 2006

Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Why buy a Dell when Apple’s Intel-based computers will run both Mac OS X and Windows? – June 08, 2005

41 Comments

  1. Dell is giving up a tremendous amount of co-op advertising dollars with this deal.

    My guess is that Dell doesn’t see any value in the co-op dollars. People are going to buy Dell with, or without, the level of advertising they do.

    I think Dell went for better processor pricing (and reduced advertising), and will do a slight of hand to make their computers look fast by using better video cards. In the low end market this could work to improve margins, something Dell lacks.

    The high-end is going to buy Intel, and Dell continues to maintain a presence there.

    Interesting MDN Word: Death, as in: This could also be the death of Dell.

  2. “If you’re still wondering why a market-share leading company like Dell might take the risk and go the competitor’s route…..”

    One reason…. PRICE!

    Dell makes cheap stuff and AMD is cheaper than Intel plus they offer ample performance to run MS Office. Most idiots that “get a Dell” don’t need higher end performance, they just want a cheap price. We’ve entered the age of disposable notebook computers.

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