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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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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............

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