Dell Prepares AMD Desktops, Laptops

By Nate Mook | Published August 17, 2006, 1:07 PM

Dell on Thursday announced an expended partnership with AMD that would bring the chipmaker's processors to Dell desktop and notebook systems. The company has reportedly ordered up to 2 million AMD machines.

In May, Dell unveiled plans to bring AMD's Opteron chips to its high-end servers before the end of the year, but said nothing about its consumer lineup. The world's largest computer marker has been a longtime supporter of Intel, helping the company remain atop the processor market.

However, AMD has made big strides in challenging Intel's dominance, largely thanks to its Opteron platform that has outperformed Intel chips while utilizing less power. Intel recently struck back at the growing threat posed by AMD with its "Woodcrest" server processor, which offers a 40 percent power reduction while providing performance improvements of up to 135 percent.

Banc of America Securities analyst Sumit Dhanda said in a report Thursday that Dell is building 1 million to 1.2 million new desktops with AMD chips inside, along with 800,000 AMD-based notebooks. Those numbers indicate that AMD will hold 15 to 16 percent of Dell's desktop business, and 18 to 19 percent of its notebooks.

The deal could be a boon to AMD's market share in the consumer space, which the company claims has been hindered by Intel's anti-competitive practices. AMD also took a big hit in retail sales in June due to low-cost Intel notebooks entering the market from companies such as Toshiba.

Still, AMD continues to ratchet up the pressure on Intel. The company recently announced plans to acquire graphics chipset maker ATI in a deal valued at $5.4 billion. The acquisition will enable AMD to offer integrated processor and graphics solutions, leading to smaller and more powerful computers.

Comments

I think it's a good thing that AMD is making headway... With the new Rev F socket, new Opterons on the way, IBM going Opteron, and Apple/Intel totaly pissing off Dell.

It was just a matter of time before AMD started taking up more of Intel's market... They're making better chips, and a lower cost... So why wouldn't Dell want to get 'In bed' with AMD. It's just a smart business.

It would be nice though to see some price drop though. But I'm still going to buy my hardware in peices, and just build my own computer.

As for Dell not adressing the gamer market, last I heard, Dell bought out AlienWare. That was just hear-say.

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So, they open the hood and change the engine block out. Big deal. Radical new features? No. Radically cheaper? No. BFD

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Wow. Horrible timing, Dell. Intel regained the desktop performance lead! Talk about your delayed reactions.

Actually, I suspect this is one of those "oh yeah? SCREW YOU TOO!" temper tantrums regarding Intel's supplying Apple with CPUs and motherboard designs.

Regardless, Dell will continue to slide. Maybe they'll claw their way back of they shape up.

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they just need to change their business model. instead of focusing on the low end ssytem, they might want to change it to mid or high end. and also, don't follow the foot step of Gateway of opening retail stores. I know the reason why they open retail stores because of Apple success. What they don't understand is Apple business model has very high profit margin while their is on low profit margin and they make it up with volume.

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I disagree. My personal belief that dell sucks all over aside, this was an interesting marketing move. I've always been an amd guy, and the decision to add them now was a good one. The cpu market is very give and take. And while intel's core 2 duo does out do amd's best right now, the infussion of capital that a deal with the worlds largest pc maker would bring will not only aid development on amd's side but keep the heat on intel at a critical time. Never let a company be comfortable at the top. Make them work to stay there. Thats how advancment is maintained.

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Agreed, but I still think it was stupid to go with AMD. Intel had apparently reduced Dell's discount, which just fuels my belief that this was a knee-jerk "screw you too!" decision.

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I just bought a hp laptop with the core duo processor. Now I would love to buy an amd laptop, however I noticed a trend. It always has integrated graphics and it's more expensive, I am a gamer, I want a nice laptop that has descent graphics, so why would I spend more on an amd based laptop, seems like an Intel problem doesn't it? The performance from what I heard was not any better then Intel so are the processor just cheaper or what, Intel is very aggressive right now I guess. I honestly don't see people buying Dell machines with Amd based processor. Only if they are cheaper and the performance is better. Either that or longer battery life on laptops. People want a brand they known, Intel's logo on the tv is all they need to see. Do you honestly see a Dell commercial with a Amd logo flashing on the screen? I also think Intel is going to scold t hem in some manner for this.

but in the end I am happy to see Amd getting dug in. Intel needs the competition. Now if we can just get Linux at 20 percent market share we will really see some good competition in the pc market.

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99.9999999999% of Dell's customers are BUSINESS/CORPORATE types. They don't care about gaming or multimedia (unless you bend the rules to label Powerpoint as multimedia). That's always been Dell's primary focus. Home-based consumers are 2nd to that, and are considered (by Dell) to be "maintstream" home users, not skilled gamers or media authors. They picture their consumer userbase as people that browse the web, play solitaire and freecell, pay bills online, and order things from Dell.com. That's pretty much it. All of Dell's marketing goals are aligned to that vision.

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Agreed. Dell made a big mistake when they started selling "cheap" Dimension PCs IMO because the reliability that Dell PCs were known for went down drastically. The Dimension systems really have degraded in quality in the past three years.

Having said that, Dell still has the best warranty options. I know the system builders don't care that much, but for businesses, that 4-hour onsite resolution contract offering for Optiplex PCs is truly the best desktop warrenty you can get anywhere. Not to mention Poweredge servers with platinum coverage can even have 2 hour onsite resolution in many places. This is why Dell is still #1 as far as computer market share.

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I think its about time. Dell has been closed minded for to long and now they've finally opened their eyes. If they can get past the exploding laptop thing and get trust back it could be a very good thing. For a while I'll be buying Toshiba, or HP laptops. Lucky their desktops haven't exploded too.

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Well as long as they stay away from anything that Sony makes from now on all will be fine. g** d*** Sony has become s***....

HP laptops? Stick to the Toshibas and do yourself a favour.

I do agree it's about time you can get an AMD in a Dell. Good move.

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What does Toshiba offer that HP doesn't besides cheaper plastic?

heh

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"What does Toshiba offer that HP doesn't besides cheaper plastic?"

1. Accidental coverage contracts available for their notebooks.

2. That...whatchyamacallit-screen that swivels every which-way.

3. To some peole, better reliability (that's strictly up for debate--not sure if I agree or disagree with that)

There are some reasons I'd prefer Toshiba to HP. Then again, if I buy a laptop, I'd definately get a Dell. I'm familiar enough with their company to know how to get a reliable model # at a cheap price, and the battery is covered for a full year under the business segment too. They are also one of the only companies who still offer next-day onsite service for laptop repair under an extended warrenty.

As far as the AMD thing goes, Dell only officially announced AMD desktops, not laptops, so investors are "speculating" that they do not have enough mobile cpu's ready yet. Perhaps they will be ready by Christmas, but without any official word from Dell that they even plan to have mobile amd cpus, who knows?

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Blah Blah Blah

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Ah, but will these explode? I only want one if it will. Everyone else's computers just don't have that.

What good is a computer if you can't leave your house for a few hours and return to a stinking smouldering ruin?

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LOL, Hey... thats not a bad idea. :P

Opteron is a server processor however... soo... I don't think so...

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I bet the modders are having a field day putting leet blowers on their Dells to keep them batteries runnin cool.

heh

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My HPaq notebook will take an Opteron, it's socket 939.

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Hey PC_Tool, that's a great idea. I'll get the insurance money from my burned down house and I'll get to sue Dell for 2 or 300 million. I think I can get at least 20 million for the pain and suffering alone. lol;-)

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intel's wh*** has fallen!

Ya hya chouhada!

(facetious snicker)

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the last nail in Dell's coffin has finally been put in place

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So you think that Dell selling computers with superior AMD processors is a bad thing?

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Inferior

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simply cluess...

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Then buy one with an Intel chip and quit posting useless garbage here.

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I agree. If you think Intel is better than go ahead and buy them and leave the rest of us AMD lovers to enjoy this good news!

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Dell PCs? Absolutely - no question. Only the typically clueless masses waste their money on such fodder.

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Are they still superior?

Have you seen the Core 2 Duo benchmarks and TDP figures?

30% more performance that the best AMD came come up with, 50% of the power consumption. Quad cores almost a year before AMD plan to have something..

The AMD glory days (if you call a miniscule share of the market glory), are over..

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yeah but they put out like 3 times the heat of the top amd cpu.

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You do know that TDP is directly proportional to heat generated.

50% TDP = 50% less heat.

Please only comment on things you know about...

I have a Core 2 Duo E6600 running here, and at full speed, the fan is trickling around, the small heatsink is lukewarm, and the temp in the BIOS shows 56 Degress C.

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A story that is only 6 years late...

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Don't you think it's kind of late that dell introduces AMD processors? While Pentium 4 was getting the **** beaten out of it by Athlon 64, Dell only sold Pentiums. Now that Intel has the lead again with Conroe, Dell decides to sell AMD processors. It kind of sounds like Dell is trying to sell cruddy computers.

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