To: Scumbria who wrote (75261 ) 8/14/2001 4:06:16 PM From: Don Green Respond to of 93625 IBM drops AMD from North American PC sales By Reuters Aug 14, 2001 (12:49 PM) URL: /story/OEG20010814S0042 NEW YORK- - International Business Machines Corp., struggling to eke a profit from its personal computer business, has stopped selling PCs containing Advanced Micro Devices Inc. chips in North America, a move intended to cut costs and satisfy business customers. ``Most of our customers are business customers, and they do prefer Intel,'' IBM spokesman Ray Gorman said of the company's principal chip supplier. ``It doesn't make sense for us to continue to invest in two separate sets of chip platforms.'' In North America, Gorman said IBM had stopped selling computers that used AMD chips in the middle of the year. In Asia, he said, the company is still selling computers with AMD chips but will evaluate by the end of the third quarter whether to move solely to Intel-based computers. Intel Corp. and AMD have each slashed prices in order to gain market share. AMD has a little over 20 percent of the market for computer microprocessors, leaving about three-quarters of the market to Intel. AMD said the strongest market for its chips is retail stores. IBM moved away from selling PCs in retail stores in 1999. ``Our strength has been in that channel,'' AMD spokesman Ward Tisdale said, referring to retail store sales. ``Apparently, that is an area that they are not focusing on.'' Sunnyvale, California-based AMD said that IBM now sells PCs powered by its Athlon and Duron processors in Japan, Taiwan, Hong Kong, Australia, New Zealand, Singapore, Malaysia and Thailand. IBM stopped selling PCs through U.S. retailers in October 1999 and AMD said in a statement that ``it is not surprising that AMD's engagement with IBM became limited at that time.'' IBM's revenues from personal computers declined in the first half of 2001, which it said was due in part to lower prices across its product lines. By midday Tuesday, Shares of AMD fell 52 cents, or 3 percent, at $16.09 on the New York Stock Exchange. Intel shares were off 7 cents at $30.48. IBM stock rose 46 cents to $106.32.