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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 RobberBaron on 2/8/2008 9:31:04 AM , Rating: 2
If something isnt selling you dump it, especially if its priced the same as something that is better. Intel doesnt need to deliver any extra rewards for selling there chip sets, they are the best today. Though I wonder if the graphics line ups for the machines are going to change as well.

A true telling moment will be if and when AMD release something that smokes Intel. IF Dell fails to re-introduce the AMD lines to there online store, then well, they are lining there pockets with Intel gold.

RE: Sales
By Griswold on 2/8/2008 9:46:41 AM , Rating: 2
Can you prove that AMDs systems didnt sell well for Dell (despite AMDs shipping volume increasing in 2007)? Or are you just an arm-chair CEO who thinks he knows how things are behind the curtain between Dell, Intel and AMD?

The fact that Intel has been subsidizing Dell for years warrants a certain amount of suspicion, thats for sure.

RE: Sales
By sweetsauce on 2/8/2008 10:02:39 AM , Rating: 2
Can you prove it did sell well and Dell is droping AMD anyways? Its called trimming the fat, and in this case AMD is a big wad of fat.

RE: Sales
By BladeVenom on 2/8/2008 12:26:17 PM , Rating: 3
Selling AMD based systems seems to be working for HP, and HP is doing better than Dell is.

RE: Sales
By RobberBaron on 2/8/2008 10:57:06 AM , Rating: 2
The fact that Intel has been subsidizing Dell for years warrants a certain amount of suspicion, thats for sure.

Because of exactly that, I cant imagine Dell wont be prepared to back up there reasoning for dropping AMD from there online store.

And of course I am arm-chair CEO'ing. But that still doesnt discount my reasoning, if it doesnt sell well or its not as profitable, why keep it. Its always about profits and keeping in the black.

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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