August 20, 2006

AMD: Making Computers Cheaper. Dell puts AMD inside.

Intel has long held a lock on the market for processors inside your average notebook and desktop computer. However, AMD has always been nipping at Intel's heels to get into the game and quit frankly "get into" the computers you buy. Dell has already started selling A?MD chips in servers, now they'll be in desktops and I guess soon in notebooks, like other vendors do.

PC World writes Dell is extending its relationship with Advanced Micro Devices by launching Dimension desktop computers with AMD processors in September and introducing a two-socket and multiprocessor server using AMD Opteron processors by the end of the year.

Until now, Dell has looked solely to Intel to supply its chips. The company surprised the industry in May by revealing it will begin selling two-processor servers with AMD chips by the end of 2006, a move predicted by analysts earlier in the year. Now Dell will extend that product family to include four-processor servers and Dimension desktop PCs.

Why?

Dell is having a hard time make low cost computers and still selling profitably. AMD's processors cost less than Intel's so Dell can sell lower cost computers and still keep battling HP, Lenovo, Gateway, Toshiba and other vendors over your wallet for computers.

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