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According to a Piper Jaffray analyst, Dell will begin shipping AMD systems in the second half of '06

It seems as though every few months we receive word of another rumor concerning Dell's wishes to sell computers with AMD processors inside. Well, this is the beginning of 2006, so isn't it appropriate that we start the year with fresh AMD-Dell talk?

Les Santiago, an analyst from Piper Jaffray, claims that Dell will ship AMD based systems in the second half of 2006 with as much as 10% of Dell's server shipments featuring Opteron processors. Mr. Santiago goes on to state that "Dell's sales force is demanding Opteron-based server offerings to be able to better compete in the market."

We've all heard this talk before. Dell talks about the possibility of using AMD processors in the future, and for whatever reason the deal is never made. Many enthusiasts seem to think that Intel and Dell may have possible marketing or other contracts that restrict Dell to using only Intel processors, but in reality it's more an issue of supply. Given Dell's business model, the question is does AMD have the capacity to ship Dell as many processors as it can consume without interruption? Can AMD provide Dell with funds for development of new systems? These are the questions that must be answered before any kind of deal can be made between these two companies.

Will we see Dell shipping systems with AMD processors in them this year? My best bet would be no, but I've seen stranger things happen. I mean, who would ever think that Apple would be using Intel processors...



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Dell may use AMD chips
By Targon on 1/11/2006 8:35:59 AM , Rating: 2
AMD has been selling VERY well in the retail channel for quite a while now. I remember having customers complain that they kept trying to get an Athlon 64 based machine at Best Buy(the only large retail chain within 40 miles) but they were sold out of all except the highest end models. I wonder if the problem was due to HP sales being very high for their Athlon 64 models and HP getting more chips.

Government offices are also LOCKED into buying Dell, but some branches of the government may have insisted that Dell provide an alternative to Intel.




RE: Dell may use AMD chips
By Questar on 1/11/2006 9:43:08 AM , Rating: 3
You are wrong in thinking the chip shortages are due to demand. They are due to another AMD management screw up.

They didn't reserve enough capacity at the chip packagers.

http://www.informationweek.com/news/showArticle.jhtml?articleID=175400100


RE: Dell may use AMD chips
By Viditor on 1/11/2006 4:03:11 PM , Rating: 2
quote:
They didn't reserve enough capacity at the chip packagers

You say tomatoe...nothing in there says that management screwed up. In fact, it says that demand was unexpectedly high! Since packaging supplies are warehoused right near the packaging plant, the most likely scenario is that AMD has exceeded their expected yield and demand has exceeded expectations. Remember that AMD owns their own packaging plant (so there is no reservation necessary...).


RE: Dell may use AMD chips
By JackPack on 1/11/2006 5:55:16 PM , Rating: 2
You're completely wrong.

"Packaging" here refers to the green cracker the die is mounted on. Not the cardboard box, the plastic clamshell, etc. Package substrates are provided by companies such as Ibiden, NTK, and Samsung Elecrto-Mechanics ACIB.

The packaging you're thinking of is ATMP facilities: assembly, test, mark, pack. Yes, AMD owns those. No they are not next to AMD's fabs. That's why the the processor is marked Malaysia, Singapore, etc. ATMP facilities are not next to Fab 30/36.


RE: Dell may use AMD chips
By Viditor on 1/11/2006 7:08:24 PM , Rating: 2
You're completely wrong.

"Packaging" here refers to the green cracker the die is mounted on. Not the cardboard box, the plastic clamshell, etc. Package substrates are provided by companies such as Ibiden, NTK, and Samsung Elecrto-Mechanics ACIB.

The packaging you're thinking of is ATMP facilities: assembly, test, mark, pack. Yes, AMD owns those. No they are not next to AMD's fabs. That's why the the processor is marked Malaysia, Singapore, etc. ATMP facilities are not next to Fab 30/36


No, I'm not wrong, and yes I knew all of that. If you go back and actually read the post again, you'll note that I said that WAREHOUSING is next to the packaging facility. By this I meant that
1. It's probably not a transport problem
2. AMD packages are made in China (there was a huge series of articles on this over a year ago). And yes, I mean packaging the dice into a processor...not the gift wrapping.

While there are many companies that supply AMD with their materials for packaging, AMD does the actual packaging...


RE: Dell may use AMD chips
By bob661 on 1/11/2006 10:22:44 PM , Rating: 2
Interesting info. Thanks.


Dell & AMD
By Aquila76 on 1/10/2006 5:33:34 PM , Rating: 3
They've said this every year for the last 5 years +. Must be renegotiation time with Intel. Or hell freezing over.




RE: Dell & AMD
By QueBert on 1/10/2006 5:48:17 PM , Rating: 2
I will never buy a Dell, and if they do start shipping AMD systems. I fear AMD won't be able to keep up with demand on both OEM and Dell's end. So, if I want to upgrade my CPU it'd be that much harder to find a chip.

this would be a great move for AMD though, since the k5 133 I have always ran AMD and never had any issues. I'd love to see them take a bigger bite out of Intel's ass. Dell has always been pro Intel, but sometimes the allmighty dollar wins.


RE: Dell & AMD
By Deinonych on 1/10/2006 7:29:56 PM , Rating: 2
I'll believe it when I see it. Dell's been playing this game so many times, I've lost count.


RE: Dell & AMD
By porkster on 1/12/2006 2:54:48 PM , Rating: 1
Why would Dell bother?


I suppose...
By Furen on 1/10/2006 6:01:24 PM , Rating: 4
The CPU shortage AMD experienced (on the OEM level) does seem to indicate that there was a huge spike in demand. I'll believe it when I see it, though...




RE: I suppose...
By fliguy84 on 1/11/2006 6:33:49 AM , Rating: 2
with the new fab36, supply won't be a problem when it goes to full production later this year


RE: I suppose...
By JackPack on 1/11/2006 5:43:23 PM , Rating: 2
Huge spike for what though? I guarantee you it's not from Dell.

Dell's 'just-in-time' manufacturing model means they stock, at most, 3 days worth of parts. They won't stock millions of boxed AMD processors.


By Saist on 1/10/2006 11:07:06 PM , Rating: 2
I think Dell's a little ticked that Apple is appearently shipping Core Duo systems right now. It would seem to me, based on MacWorld, that Apple is Intel's new sugar-kitten. I'm not sure where Dell now fits into the Hierarchy of Intel, but I'm sure that Michael Dell and company isn't happy.

I would actually expect Dell to start shipping AMD processors just to spite Intel and Apple, sort of a "we don't need you" gesture.




By JackPack on 1/11/2006 5:38:32 PM , Rating: 2
The Yonah parts in the iMac are likely higher TDP parts are suitable only for desktop systems.

Ever manufacturer using Yonah for mobile systems are saying February - including Apple.


Apple
By kalaap on 1/10/2006 5:49:20 PM , Rating: 3
Maybe Apple might be getting better discounts w/ intel so dell is trying to pressure intel w/ "talks" w/ AMD




LMAO!!!!
By bob661 on 1/11/2006 1:42:38 AM , Rating: 2
Seriously though. Dell just MIGHT sell AMD CPU'd systems sometime this year. Seriously.




Perhaps
By Lifted on 1/11/2006 7:22:29 AM , Rating: 2
When AMD opens their new FAB they might be able to support Dell with chips, but at this point I don't they have the volume. But Dell will only make a small percentage of systems with AMD chips anyway, they don't want to loose too much of their Intel discounts.

It's also possible Intel is being a bit more relaxed with thier partnerships due to the current charges AMD has filed, and will go back to their old ways once that is behind them.




Fujitsu Siemens
By MrKaz on 1/12/2006 7:17:05 AM , Rating: 2
Well Fujitsu Siemens is starting to sell Opteron this year, and they are even putting a higher model/reference number over the Intel equivalent one.

I think this will be the year of Intel (because of Apple, new platforms, new processors,...) , but I think AMD already got the attention of the BIG OEM, specially on the server market, since they know Intel will not release nothing this year on that part of the market.




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