Dell Soon To Announce AMD-Based Lineup: Report - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Dell Soon To Announce AMD-Based Lineup: Report

One analyst says AMD-based Dell wares will start with notebooks revealed within the next few months, then spread to servers and desktops.

SAN JOSE, Calif. — One of the worst-kept secrets in the industry is Dell Computer Inc.’s reported move to develop PCs, based on microprocessors from Advanced Micro Devices Inc.

“We believe there will be an AMD/Dell deal announced very soon; more specifically, we believe it will come as early as March and involve Dell notebooks,” said analyst Doug Freedman of American Technology Research, in a report. “The deal will likely mature from there to include servers and desktops, in that order, in subsequent months.”

The move could be a blow to Intel Corp., which has been the sole supplier of processors to Dell. “With the announcement, we believe shares of AMD will rally and shares of Intel will decline,” he said. “While both stocks already reflect an AMD/Dell deal to some extent, we believe there will still be a reaction in the range of 10 percent for AMD shares and a decline of 5 percent for Intel.”

The analyst believes that Intel must set a new and different course going forward. “Although we are not in total agreement with Intel management's present direction or vision, we do believe that should things remain off course, the board will be forced to step in and make the necessary adjustments,” he said. “Intel needs to do more to improve its total solution cost and not enter into a price war with AMD until it can introduce new technology that will be able to take back share.”

For now, though, AMD appears to have the upper hand. “Currently, AMD is in a strong position with price advantage as the low cost provider, and a technological advantage with its SOI, low power, integrated memory controller, and dual core solution,” he said.

“While we are buyers of AMD, we believe it cannot physically produce enough processors in 2006 and 2007 to take more than 20-25 percent market share,” he said. “This will give Intel time to repair some of the damage it has sustained over the course of 2005.”

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Why It's Nice to Know What Can Go Wrong with AI
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  11/11/2019
Slideshows
Top-Paying U.S. Cities for Data Scientists and Data Analysts
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/5/2019
Slideshows
10 Strategic Technology Trends for 2020
Jessica Davis, Senior Editor, Enterprise Apps,  11/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll