Print 77 comment(s) - last by Pythias.. on Feb 14 at 11:58 AM

Dell has since removed the above disclaimer from its website.

Dell directs customers to retail stores if they want AMD systems

AMD-powered Dell Vostro 1000
Dell says goodbye to AMD-based Inspirons on

It appears that the AMD-Dell relationship may soon be coming to an end – at least online. Dell was rumored for years to consider switching to AMD processors for its computers, but the company constantly denied the rumors.

Dell finally broke the news to the world in May of 2006 when it announced that it would sell AMD-based servers to the public. The company followed with AMD-based desktop and notebook computers.

All seemed to be well with the AMD-Dell partnership -- until now. Dell appears to be in the process of removing AMD-powered machines from its website. Although machines like the Latitude D531, Vostro 1000, and Optiplex 740 are still currently available online, Dell put this cautionary note at the top of the search page for anyone looking for an AMD system:

Shop for Dell computers with AMD processors in retail stores. See our retail partners for details.

Computers with AMD processors are not available online.

This move would be a big blow to AMD, which relished the opportunity to partner with a big-name OEM like Dell -- a company that it tried for years to crack.

Customers who wish to purchase AMD-based Dell machines in the future will instead have to go to brick-and-mortar stores like Best Buy, Staples, Wal-Mart or Sam's Club. Any exposure is better than none, but Dell derives the vast majority of its sales from its online business so AMD will clearly be missing out.

The news of Dell giving AMD the boot online couldn't come at a worse time for the Sunnyvale, CA-based company. AMD reported 2007 revenue of $6.012 billion and a net loss of $3.379 billion. AMD is still struggling with the remnants of its 2006 purchase of ATI -- ATI is also now worth 30% less than AMD's original purchase price.

Dell has also had a mixed bag of news in the past few months. The computer giant was able to slip past HP as the top computer marker in the U.S. for 2007. Dell commanded 31.4% of the U.S. market last year compared to 26.1% for HP.

On the other hand, Dell announced the decision to close its Canadian call center resulting in the loss of 900 jobs and close all 140 of its Dell Direct Store kiosks around the U.S.

Updated 2/8/2008
We recently spoke with a Dell representative Anne Camden who wished to clarify the recent happenings on Dell's website. First of all, Dell has since removed the "Computers with AMD processors are not available online" disclaimer from its website. Whether this was a slip-up on Dell's part remains to be seen.

Secondly, Dell Latitude, Vostro and Optiplex systems using AMD processors will continue to be made available on Dell's website.

Finally, AMD-based Inspiron notebooks will no longer be offered on Only the Energy Star 4.0 Inspiron 531 desktop lives on through Inspiron notebooks and the rest of the Inspiron desktop family will only be available from retail stores such as Wal-Mart and Staples.

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By kosmokenny on 2/8/2008 8:48:27 AM , Rating: 5
Dell really missed the boat with the AMD thing. They let about two and a half years of Athlon 64 and Opteron dominance slip by them and then didnt pick up AMD until Core 2 Duo came out. Youd think a company like Dell would be able to react a little faster to the market. On the plus side, if Dell is going to dump them, it probably means AMD is coming out with something awesome soon.

RE: Whoops
By Chadder007 on 2/8/2008 8:58:48 AM , Rating: 4
Or Intel paid Dell off again to just use their processors. But yes they were way late to the boat.

RE: Whoops
By omnicronx on 2/8/08, Rating: 0
RE: Whoops
By FITCamaro on 2/8/08, Rating: 0
RE: Whoops
By King of Heroes on 2/8/2008 1:07:20 PM , Rating: 4
"Intel is paying off the entire human race in order to crush AMD!"

Its amazing how common this steaming pile of anti-logic is.

The other, infinitely more sensible, explanations I've heard are that AMD is trying to renegotiate the very sweet deal they gave Dell (and this is Dell's reaction to that), or it could be because that, at near equal price points and configurations, Intel is just a better performer.

RE: Whoops
By Hulk on 2/8/08, Rating: 0
RE: Whoops
By Samus on 2/8/2008 8:24:32 PM , Rating: 3
Right, it really worked out for Intel. They literally 'bought' time from Dell to catch up to AMD. Dell was the largest computer manufacture in the world during those years, and there's no doubt Intel needed to force NetBurst crap down the pipe while they developed the Athlon-killer 9000.

RE: Whoops
By ImSpartacus on 2/8/2008 10:22:36 PM , Rating: 2
That makes sense. If Dell would've gotten their shit together and put some athlons in during the golden age, Intel could've been in deep.

I guess it's kind of nice though, we got C2D out of the whole thing.

RE: Whoops
By AntDX316 on 2/9/2008 7:02:06 AM , Rating: 1
all the AMD stuff happen so intel could produce the fastest processors on the market for affordability to everyone and performance for the government

such as probably why the middle eastern people r crazy so their can be global security measures learned from the situation

at the end all those will disappear and the world will be much better :)

RE: Whoops
By Pythias on 2/14/2008 11:58:16 AM , Rating: 2
Dell was the largest computer manufacture in the world during those years

HP was. Dell just recently closed the gap.

RE: Whoops
By edborden on 2/8/2008 9:00:28 AM , Rating: 2
"On the plus side, if Dell is going to dump them, it probably means AMD is coming out with something awesome soon."

Huh? lol

RE: Whoops
By Regs on 2/8/08, Rating: -1
RE: Whoops
By ATC on 2/8/2008 2:17:36 PM , Rating: 5
What he meant, I think, is that when Dell wasn't selling AMDs last time, AMD had the superior chips. Now that Dell won't be selling AMD again, one would think that AMD's dominance is around the corner in the form of a superior chip again.

It's funny but I doubt AMD can leap frog Intel this soon.

RE: Whoops
By alan328 on 2/8/2008 9:00:58 AM , Rating: 4
It sounds like the story of the "chicken with golden eggs".... but a even more sad version....
DELL see that AMD laid a golden egg in the morning... so, he buys it... waits the whole day and still cannot see another golden egg, so, he dump AMD when the sun just about to raise....

Wish AMD lays another golden egg soon!

RE: Whoops
By Master Kenobi on 2/8/2008 10:07:19 AM , Rating: 5
Logistics. This sounds like more of a logistics problem. Dell builds to order to the most part. Perhaps they were having a problem getting the number of AMD processors they needed. This way they ship complete systems for sale a retail locations, meaning users can get it same day (if that system is in stock). Intel can likely supply more processors based on demand and Dell finds this better for their online model. Maybe Dell was just having problems stocking enough AMD chips leading to delays with online orders.

I suspect it will be a few days before we find out the exact reasoning behind this move.

RE: Whoops
By Pandamonium on 2/8/08, Rating: -1
RE: Whoops
By Ratwar on 2/8/2008 11:40:23 AM , Rating: 2
Well, it has to be a warehousing problem. Building to order means that you need a large number of parts available in house at any given time. If AMD was unable to provide a constant source of processors, Dell would be forced to drop them, especially if other OEMs (think HP) are getting the first crack at any AMD processors (which is probably what's happening as HP is slightly bigger, and has been in AMD's corner longer).

RE: Whoops
By DigitalFreak on 2/8/08, Rating: -1
RE: Whoops
By Lord 666 on 2/8/2008 11:03:37 AM , Rating: 3
Or Dell waited until Core 2 Duo was ready on purpose.

Why? So they can show that they tried to sell AMD CPU products, but the market was not there since Intel had a superior product.

RE: Whoops
By crimson117 on 2/8/2008 11:59:01 AM , Rating: 3
I believe that was entirely intentional. When Intel couldn't compete vs. AMD's offerings, they used their monopoly power to force Dell to stay Intel-only. Once Intel regained the performance crown with Core 2, they "gave in" and let AMD into the game.

I hope AMD continues their anti-trust lawsuit against Intel. It's not enough that Intel eventually let loose its grip on Dell and other manufacturers. They need to pay for their past crimes, too.

RE: Whoops
By kilkennycat on 2/8/2008 12:08:02 PM , Rating: 1
Or maybe Dell is just a little faster off the mark these days and sees the writing on the wall before the wall falls on them. Dell is just making room for a whole raft of products based on the Intel 45nm processor family. I do indeed agree that Dell indeed totally missed the boat with the AMD X2 family but times have indeed changed since then, thanks to AMD management incompetence starting with the purchase of ATi. Core2 was released 3 months before the ATi purchase was finally consummated... with $2billion of BORROWED money. The Core2 threat was obvious to all, including AMD. They could have withdrawn from the ATi purchase, but they let their ego over-ride any common-sense. Strapped for cash and with the distractions of integrating ATi's business, the AMD processor-development effort and AMD's investment in new processes has been suffering since the ATi acquisition.

Fast forward to today, with AMD having lost $3.3 billion in 2007, including a $1.3billion write-down of the ATi acquisition. A move to 45nm is the only hope for any market penetration by Barcelona/Phenom, and that does not seem to be coming for at least a year... Intel was publicly demonstrating fully functional Penryn processors a year ago.... With the move to 45nm and its economies of scale, besides the enhanced performance, Intel can crush AMD on price whenever they choose and still make great profits. And if AMD cannot make a profit on their processors, where can they get the development cash for next-gen processors and new silicon processes ? Borrow it ? Ha, ha, ha............

RE: Whoops
By adiposity on 2/8/2008 2:38:52 PM , Rating: 3
Dell did what was best for Dell, period. When AMD was dominating, Intel paid off Dell to use their slightly worse processors. As soon as they were in the performance lead again, they had to need to squeeze AMD by flooding Dell with cheap processors. So they stopped, and Dell began to take advantage of AMD's low priced processors. They deliberately did not pander to whomever had the ability to demand high prices. Thus they deliberately "missed the boat" because AMD's high performance processors did not save them any money.


RE: Whoops
By Noya on 2/9/2008 1:07:05 AM , Rating: 2
Dell really missed the boat with the AMD thing. They let about two and a half years of Athlon 64 and Opteron dominance slip by them and then didnt pick up AMD until Core 2 Duo came out.

If I recall correctly, Intel was pulling a mafia type move pressuring them NOT to buy AMD cpu's in large numbers.

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