Citigroup Research estimates Dell may acquire 1.4 to 2.1 million mobile processors from AMD this year.
“Our field work suggests two AMD-based consumer notebooks will be available in September from Dell. This will increase to 4 models in October. Normally, new notebook models will sell between 100K-150K units per month,” a report from Citigroup claims.
“Of the average 1.5M notebook units expected to be sold in Q4 2006, we estimate 750K are “new” sales for AMD, implying 750K of Dell-related sales cannibalize AMD sales from other sources. Assuming an average $68 ASP, this translates to $51M incremental revenues and we adjust our model accordingly,” the report states.