Article: Dell has no plans to use AMD chips

[AlexWade]

I saw this on CNet.

http://news.com.com/2100-1006_3-5161443.html?tag=nefd_top

Here are soundbytes that I found interesting:

"[T]he corporate user has not yet found confidence in AMD and so most of the corporations use Intel."
Really? Then why is Opteron is outselling Xeon and Itanium

"Where AMD has gained a good foothold is in the consumer space. That has not been the primary focus of Dell strategically."
So why advertise for a Dell PC every 5 minutes?

Personally, I don't care, because Dell's are the only computer I've ever used where it was noticablely slower. If they can screw up a good P4, they will screw up a good A64.

 

[John]

Dell = Intel's Bitch

They do not want to bite the hand that feeds them (advertising bucks, price breaks, etc).

 

[nageov3t]

I think the problem is with the branding of Intel.

when Joe Average hears "Intel Pentium 4," he recognizes the name and knows it as a generally upstanding brand; on the otherhand, "AMD Barton" sounds a bit more brand-x'ish to someone who's otherwise clueless.

 

[Sunner]

Opteron outselling Xeon?
SCO must be handing that crackpipe around.

 

[MercenaryForHire]

Originally posted by: AlexWade
I saw this on CNet.

http://news.com.com/2100-1006_3-5161443.html?tag=NEFd_top

Here are soundbytes that I found interesting:

"[T]he corporate user has not yet found confidence in AMD and so most of the corporations use Intel."
Really? Then why is Opteron is outselling Xeon and Itanium

"Where AMD has gained a good foothold is in the consumer space. That has not been the primary focus of Dell strategically."
So why advertise for a Dell PC every 5 minutes?

Personally, I don't care, because Dell's are the only computer I've ever used where it was noticablely slower. If they can screw up a good P4, they will screw up a good A64.

Okay. :beer::beer:

- M4H

 

[Lonyo]

Originally posted by: loki8481
I think the problem is with the branding of Intel.

when Joe Average hears "Intel Pentium 4," he recognizes the name and knows it as a generally upstanding brand; on the otherhand, "AMD Barton" sounds a bit more brand-x'ish to someone who's otherwise clueless.

AMD Athlon XP, not AMD Barton, that would be like saying Intel Northwood.
But that's a moot point.

AMD do have adverts, and while it may not necessarily reach the general consumers as a whole, AMD sponsors the Ferrari Formula 1 racing team, which may improve peoples opinions of the company and stop them thinking it's such a Brand-X product.
It is a shame AMD aren't doing as well as they should be, but hopefully they will achieve some more brand awareness soon.

 

[Wingznut]

Originally posted by: AlexWade
"[T]he corporate user has not yet found confidence in AMD and so most of the corporations use Intel."
Really? Then why is Opteron is outselling Xeon and Itanium

Opteron is outselling Xeon and Itanium? Nah, that's not true.

I know you guys think it's a big conspiracy... But the fact of the matter is that if Dell felt that carrying AMD would increase their profit, then they would.

 

[CraigRT]

Originally posted by: Wingznut

Originally posted by: AlexWade
"[T]he corporate user has not yet found confidence in AMD and so most of the corporations use Intel."
Really? Then why is Opteron is outselling Xeon and Itanium

Opteron is outselling Xeon and Itanium? Nah, that's not true.

I know you guys think it's a big conspiracy... But the fact of the matter is that if Dell felt that carrying AMD would increase their profit, then they would.

as much as it sucks to admit, I totally agree..

 

[Jeff7]

Originally posted by: loki8481
I think the problem is with the branding of Intel.

when Joe Average hears "Intel Pentium 4," he recognizes the name and knows it as a generally upstanding brand; on the otherhand, "AMD Barton" sounds a bit more brand-x'ish to someone who's otherwise clueless.

Person who used to work at the electronics department at the Walmart I work at (yeah yeah, it's Walmart, I know) said she won't use or recommend anything but Intel processors. There's one successful brainwashing. 4 AMD's here, 1 Intel - which is in a laptop.
All but my dad's PC run distributed computing projects - he insists on having a screensaver that shows pictures. Yeah well.

 

[nycdude]

Originally posted by: John
Dell = Intel's Bitch

They do not want to bite the hand that feeds them (advertising bucks, price breaks, etc).

I like that analogy. They have always been Intel.

 

[NFS4]

Originally posted by: Wingznut

Originally posted by: AlexWade
"[T]he corporate user has not yet found confidence in AMD and so most of the corporations use Intel."
Really? Then why is Opteron is outselling Xeon and Itanium

Opteron is outselling Xeon and Itanium? Nah, that's not true.

I know you guys think it's a big conspiracy... But the fact of the matter is that if Dell felt that carrying AMD would increase their profit, then they would.

Well, AMD doesn't have the cash to pad Dell's pockets like Intel does so of course Dell won't switch to AMD Money talks, and AMD just doesn't have enough of it right now.

 

[dullard]

Dell probably has some of the most strict requirements of anyone. Can AMD honestly handle Dell's business model? Dell doesn't buy the chip until the day Dell will use it. Can AMD (1) provide a sufficient quantity of chips to handle Dell's needs and (2) supply that quantity within a day's notice? I was under the impression that many of AMD's chips are in short supply (AMD is nearly maxing out their production capabilities) making both #1 and #2 impossible for AMD.

My other thought is that computers with AMD chips are always considered 'Value computers'. There is far less ability for markup in the value computers - meaning that Dell won't make much profit even if they did sell AMD chips. In fact, they'd probably canibalize Dell's higher margin sales. Dell is #1 in profits in the computer business for a reason...

 

[cowdog]

Dell and Intel have a very good business relationship that benefits each quite well. And corporate America has found Dell a rather solid, low-cost partner for their computing needs. That's a tough nut for AMD to crack.

 

[Passions]

Dell and Intel have an "agreement," why is that so hard for you to understand?

 

[jdogg707]

Ya, didn't Intel pay Dell 25 Million a few years ago to keep using only their chips in their PC's? You know Intel is giving Dell better prices on processors than anyone else, hence their low prices, so it probably makes no since for Dell to go AMD because they would end up losing money and in the process incorporate a more difficult production design. Gateway cut AMD out for the same reason, Intel gave them more money and allowed for them to be a little more comeptitive. I don't really care, I wouldn't buy a Dell, I can build an AMD machine, so why does Dell need to put Athlon processors in it's desktops...it doesn't.

 

[Elcs]

Originally posted by: Lonyo

Originally posted by: loki8481
I think the problem is with the branding of Intel.

when Joe Average hears "Intel Pentium 4," he recognizes the name and knows it as a generally upstanding brand; on the otherhand, "AMD Barton" sounds a bit more brand-x'ish to someone who's otherwise clueless.

AMD Athlon XP, not AMD Barton, that would be like saying Intel Northwood.
But that's a moot point.

AMD do have adverts, and while it may not necessarily reach the general consumers as a whole, AMD sponsors the Ferrari Formula 1 racing team, which may improve peoples opinions of the company and stop them thinking it's such a Brand-X product.
It is a shame AMD aren't doing as well as they should be, but hopefully they will achieve some more brand awareness soon.

AMD also sponsor Blackburn Rovers (Barclaycard Premier League Football Team (or 'soccer' to most of you)). Even though they are in one of the best Football leagues in the world, most people wont know Blackburn Rovers as well as they know some famous teams like Arsenal, Manchester United and my local team, Newcastle United.

Im just theorising here so this is unfounded but I dont think a large percentage of people who 'care' about the difference between AMD and Intel watch football. A PC is a PC to most people, unfortunately for the industry its nearly all Intel that gets the trade from an average user. I think AMD should choose more wisely about their marketing techniques. It will prove difficult to keep up with Intel the way that they have done over these past few years both techologically and finacially. Money may not be everything when it comes to R&D but it probably does help quite a bit.

 

[Sunner]

Many people don't know about Intel either, maybe about Pentium, but they're more likely to know about Dell or Compaq, rather than Intel or AMD.
Pretty much the same at work, we don't buy "Intel" servers, we buy Sun or HP servers, and if HP decides that Opteron is good enough to go into a Proliant, we won't hesitate to buy one if it suits our needs.

 

[Maximilian]

Originally posted by: Sunner
Many people don't know about Intel either, maybe about Pentium, but they're more likely to know about Dell or Compaq, rather than Intel or AMD.
Pretty much the same at work, we don't buy "Intel" servers, we buy Sun or HP servers, and if HP decides that Opteron is good enough to go into a Proliant, we won't hesitate to buy one if it suits our needs.

well if these people dont know about intel i guess they dont make much use of their tv most pc//pc store adverts i see have the little intel inside logo and dingy tune built in there somwhere.

 

[mikecel79]

Then why is Opteron is outselling Xeon and Itanium

Outselling Xeon? Can I have some of what you've been smoking?. There are WAY more manufacturers using Xeons in servers than there are for Opterons. Opteron may be outselling Itanium but they really compete in different markets.

 

[Abhi]

Dell = Stupid...

 

[Sunner]

Originally posted by: Soviet

Originally posted by: Sunner
Many people don't know about Intel either, maybe about Pentium, but they're more likely to know about Dell or Compaq, rather than Intel or AMD.
Pretty much the same at work, we don't buy "Intel" servers, we buy Sun or HP servers, and if HP decides that Opteron is good enough to go into a Proliant, we won't hesitate to buy one if it suits our needs.

well if these people dont know about intel i guess they dont make much use of their tv most pc//pc store adverts i see have the little intel inside logo and dingy tune built in there somwhere.

I guess things are different over there in the States, around here I've seen exactly one Intel commercial in my entire life, and frankly, it was one of the wierdest commercials I've ever seen.
It sure didn't make a lasting impression on my parents, cept maybe something like "That wierd commercial".

Even on the net, most adds I see are for Falcon Northwest, Dell, HP, Alienware, etc, and of course they have an Intel Inside logo somewhere in there, but I doubt many people think about that.
After all, Intel doesn't sell any systems, so I'd recon most people would ask "Dell vs HP?" before "AMD vs Intel?".

And no, these forums don't count

 

[Maximilian]

o well guess its jus the uk where they do that lots. Although ive only ever seen a fully dedicated to intel commercial a few times and that was with a space dude with a pentium 1

 

[stateofbeasley]

If Dell were to add AMD systems to its line of products (say a Xeon server and an Opteron server) this would require keeping more inventory lines, complicate inventory keeping & manufacturing, and require additional training & product validation.

Dell is a business and their goal is to make $. If adopting AMD products would make them more profitable they would buy AMD products. Your "assertion" that Dell = stupid is unreasonable.

Originally posted by: Abhi
Dell = Stupid...

 

[NFS4]

Originally posted by: Abhi
Dell = Stupid...

No, it's actually quite fitting for Dell's biz model NOT to stock AMD processors. Besides, extra $$$ from Intel always helps

 

[bjc112]

Originally posted by: John
Dell = Intel's Bitch

They do not want to bite the hand that feeds them (advertising bucks, price breaks, etc).

You're right.. But why would they want to? They get screaming deals and are still making BANK on all their sells..

Number 1 or 2 in overall sells correct?