This doesn't look good if true...(i guess compaq never learns from its mistakes)
Compaq eyes AMD's K6 for
Presario line
By Michael R. Zimmerman, PC Week Online
11.19.97 6:00 pm ET
LAS VEGAS -- Advanced Micro Devices Inc. is in the throes of a
Catch-22. But a pending licensing agreement with Compaq Computer
Corp. could remedy the situation and push AMD deeper into the
mainstream in 1998.
In order to make money, the Sunnyvale, Calif., microprocessor
manufacturer needs to run its processor fabrication plants at full
capacity. To do that, it needs the backing-via CPU licensing-of major
PC manufacturers. However, to date, most PC makers have been
reluctant to sign on with AMD for fear that it won't be able to meet
volume demand.
But that Catch-22 could be soon resolved.
Compaq, the world's No. 1 computer maker, is developing an
aggressive strategy for its consumer-oriented Presario line of desktops
and notebooks for 1998 that includes AMD's K6 processor, according
to sources. The Houston-based computer maker has been disclosing to
customers over the past few weeks its plans to outfit the majority of the
Presario family with multiple iterations of the K6 next year.
Though no licensing agreement has yet been inked between AMD and
Compaq, the latter is looking to have about 60 percent of the Presario
line based on the K6 by the end of 1998, sources said.
Compaq officials declined to comment on unannounced products. AMD
officials also declined to comment.
The news didn't faze one corporate customer.
"For business applications, it doesn't matter what's in the box," said Rick
Allen, an engineering systems analyst at Philip Morris U.S.A., in
Richmond, Va. Allen oversees about 300 PCs, some of which are
equipped with AMD chips.
AMD, which has posted less-than-exemplary results for the past two
quarters, blamed the poor financial showing on the inability to meet
projected CPU volumes. The company had projected volumes of 1.5
million units for the third quarter but actually shipped two-thirds that
number.
That's expected to change in early 1998, however, when AMD
transitions production to its 0.25-micron manufacturing process. The
company expects 80 percent of its processors to be built on 0.25
micron by the first quarter, and no products built on 0.35 micron by the
end of the third quarter.
Compaq aside, AMD has been diligently signing up PC makers for the
K6, including IBM Personal Computer Co., Digital Equipment Corp.
and Acer America Corp.
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