Sorry Boys but Dell says no to AMD.
biz.yahoo.com
Dell rules out AMD chip deal despite Intel shortage
NEW YORK, Jan 26 (Reuters) - Dell Computer Corp. (NasdaqNM:DELL - news), which earlier on Wednesday warned that its fourth-quarter results would fall short due to shortages of key parts, is in no rush to find new suppliers in the wake of the shortfall, Chairman and CEO Michael Dell said.
Dell told analysts on a conference call that the Round Rock, Texas-based company was studying how to ensure a better supply of components but was not ready to spurn its long-time supplier Intel Corp. (NasdaqNM:INTC - news) -- at least just yet.
``You are not going to see us change our approach to partnering based on one difficult transition,' Dell said.
He was responding to a question over whether Dell would begin working with Intel-rival Advanced Micro Devices Inc. (NYSE:AMD - news) during an analyst conference call held to discuss the reasons for the fast-growing PC maker's financial shortfall.
On Wednesday, Dell, the world's No. 2 personal computer maker, warned revenue and earnings would fall short of expectations for the second quarter in a row, due in part to a shortage of key microprocessor and memory chip components.
``The transition we have just gone through was quite challenging. I don't think we should take a rash action. Any decision would be reflective of a long-term strategy,' Dell said, appearing to discount near-term plans to embrace AMD.
Dell is alone among major PC makers that relies solely on Intel for its core microprocessor chips that form the brains of its PCs. Other PC makers count on AMD for at least a portion of their microprocessor parts, protecting them against dependence on a single source of supply.
Earlier this month, AMD said Gateway Inc. (NYSE:GTW - news), the No. 2 direct PC supplier after top-ranked Dell, said it had once again selected AMD and its Athlon processor for use in some Gateway PCs.
The move marked a reversal by Gateway, which last year had jilted AMD and embraced Intel as its sole microprocessor source.
The return to the AMD fold came after Gateway warned its own fourth-quarter results would miss analysts' forecasts, in part, because Intel had been providing ``spotty and unreliable' supplies of chips and PC assembly boards. |
