Stephen DiFranco, AMD's Global Consumer Channel VP, speaks on supply issues

All may not be so rosy over at Sunnyvale. AMD is reportedly experiencing a supply shortage of its processors. While some may point their fingers at Dell gobbling up supplies, AMD's Global Consumer Channel VP Stephen DiFranco said, in similar reports at Ars Technica and Tech Reportthat "Dell is really not a factor," and "hasn't really had much of an impact yet."

DiFranco reasons that notebooks appeared on Dell's Web site only recently, and desktops no more than two months earlier, thus having minimal impact on demand so far.

When Dell announced it had finally made the leap of faith to use AMD processors, the Texas PC maker cited that adequate levels of supply as one of the reasons behind the decision to look beyond Intel.

The main reason, according to DiFranco, is that consumer demand is outrunning supply.

"Typically, the channel prefers a lot of inventory in December," DiFranco said. "This year we have seen demand spike earlier than anticipated, and our engineering inventory has been off."

When asked if AMD has any concerns that its users may choose Intel processors if supplies of AMD chips run dry, DiFranco responded, "We don't expect our users to jump brand. Their loyalty comes from many years of dedication, and they're a sophisticated group. We think they will stay loyal over the long term; they're better served by sticking with AMD technology."

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Related Articles
Hell Freezes Over: Dell Goes AMD
May 18, 2006, 5:13 PM

Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki