Hi John,
AMD? We don't need no stinkin AMD, either!
...Do you know it from 'The Treasure of the Sierra Madre', or from 'Blazing Saddles' ;) ....
Dell Takes a Step Back From AMD
By DON CLARK
February 8, 2008 2:00 p.m.
Dell Inc. has decided to stop selling most consumer systems powered by Advanced Micro Devices Inc. chips through Dell's popular Web site.
The big computer company says it still plans to keep selling the AMD-based machines in retail stores and over the phone. But Dell's decision is nevertheless seen as a negative for AMD, which took years to convince Dell to modify its longtime strategy of using only chips from Intel Corp.
"Most of Dell's sales volume still goes through the Web site," said Roger Kay, an analyst at Endpoint Technologies Associates. "If you take away that channel it's not a reward."
David Frink, a Dell spokesman, said the shift on Dell's Web site had been made in the past few days. He noted that AMD-based systems for business customers are still available through the site, as well as one consumer desktop system. He said Dell's decision about consumer systems could be revisited in the future, adding that Dell remains committed to offering AMD-based systems to give its customers a choice among two chip suppliers.
John Taylor, an AMD spokesman, noted that AMD-based Dell systems seem to be quite popular in retail stores. "We feel really good about the relationship with Dell and the growth ramp we've experienced," he said.
Dell's shift concerning its Web site was reported by Web sites that include the Inquirer.
Dell, based in Round Rock, Texas, in May 2006 announced for the first time that it would use AMD chips in addition to Intel products. The strategy shift was seen as a major breakthrough for AMD, which was then seeing experiencing strong sales momentum from a line of chips it first introduced in 2003.
That summer, however, Intel counterattacked with a major overhaul of its own chip technology. AMD subsequently experienced a series of stumbles in updating its own technology.
Dell, meanwhile, later adjusted its longtime direct sales strategy to add retail outlets, including Wal-Mart Stores Inc. Mr. Frink noted that the AMD-based Dell consumer systems are available in thousands of stores.
He did not give an exact reason for the change concerning AMD sales through the Dell Web site, other than to say "we adjust our product offerings frequently."
Mr. Kay noted that AMD's healthy sales volume through Dell stores means "it's not like that AMD is getting their legs cut off." He added, however, that it's hard to see how many consumers would purchase a system over the phone from Dell if it is not listed on the company's Web site. "How are you going to call up on the phone if they don't know it exists?" he asked. |
