Citigroup analysts say that Dell will intrduce AMD desktops by September 2006

In what might be the next major move by Dell, the company is expected to introduce desktop computers using processors from AMD by September of this year. According to Citigroup Inc. analysts, talks with component manufacturers have revealed that Dell had been seen using AMD processors in desktop configurations, presumably with prototype systems at manufacturing facilities in Taiwan or China.

According to Citigroup analyst Jeff Yeung, several analysts from Citigroup are in talks with component manufacturers in Asia. Earlier in June, AMD said during a conference with industry reporters that it expects Dell would embrace more of its processors. The report by Citigroup suggests that Dell will start with entry level systems.

DailyTech previously reported that Dell had announced it would start using AMD's Opteron processors in its workstations and servers. The move was unprecedented in all of Dell's history, as the company had been exclusively Intel-only since its inception. Upon its acquisition of Alienware, which sells both AMD and Intel high-performance computers, there was speculation that Dell would eventually use AMD processors and its Opteron announcement finally confirmed it. Dell's chairman Michael Dell said in an interview that Dell's XPS line would not be affected by the Alienware acquisition and that Dell would continue to develop the XPS line as its own offering.

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