Dell to offer AMD desktops and notebooks - analyst

By Steve Malone

Posted on 18 Aug 2006 at 11:19

Dell Computer is widely tipped to announce an expanded alliance with chip maker AMD. According to rumours circulating, Dell plans to buy in up to two million AMD powered machines.

The powerful Bank of America Securities analyst Sumit Dhanda is reporting that Dell plans to build 1 to 1.2 million new desktops with AMD chips inside and another 800,000 AMD-based notebooks

The news will be a cause for celebration at AMD which has been trying for many years to break Intel's position as monopoly supplier to the world's biggest PC maker.

The big breakthrough came in May this year when Dell announced it would begin to offer Opteron powered servers. Then, it was seen as only a matter of time before the Athlon began to appear in Dell desktops and notebooks.

Dell's executives will be uncomfortable aware of HP's fight back in the desktop and server markets, largely on the back of cheaper yet more powerful Opteron and Athlon chips while Dell clung loyally to Intel. However last month's profit warning has shaken the company out of its complacency - overheating batteries notwithstanding - as it tries to raise its margins and improve customer service.