Dell signs deal with AMD for millions of chips

Posted on Monday, June 26 2006 @ 23:53 CEST by Thomas De Maesschalck
The Inquirer reports AMD and Dell signed a deal for millions of processors:
If you're still wondering why a market-share leading company like Dell might take the risk and go the competitor's route at the time when new architecture from its primary partner is probably set to rock the world, there is only one simple reason: Supply.

Dell can get Conroes and a great share of WoodCrests and take a ticket to stand in line for Meroms, which are scheduled to be split between Apple and Lenovo. No other manufacturer will get anywhere near the volumes of these two, and Dell just does not like to be on a short leash. Especially if it spends valuable TV air-time and paper ads on products that look likely to be put on a back-order.

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