Dell Expands Partnership with AMD, Offers Notebook Computers with Custom Processors

Strategic Insights -

Dell has become the first major manufacturer to offer notebook computers with Advanced Micro Devices (AMD) processors, marking a significant expansion of their partnership just two months after ending their exclusive reliance on Intel microchips. This move is expected to provide Dell with a competitive edge in the market, particularly during the holiday season. The new AMD-based notebooks, starting at $549, will be available for shipping in December and will give customers a more affordable option with similar performance.

Key Takeaways:

  • Dell has started selling notebook computers with AMD's Turion and Sempron processors, marking a significant expansion of their partnership with the company.
  • The new line of notebooks, starting at $549, will be available for shipping in December and will provide customers with a more affordable option with similar performance.
  • The decision to partner with AMD is seen as a strategic move to offer customers more choices and increase market competitiveness.
  • AMD's processors have been available in Dell's desktop computers and servers since September, but this is the first time they are being used in notebook computers.
  • Analysts expect the partnership to be a "horse race" between AMD and Intel in terms of performance, with AMD's processors offering lower prices at similar performance levels.
  • Dell's decision to partner with AMD was seen as a surprise by some, but analysts believe it was a strategic move to increase market competitiveness and offer customers more choices.

Statistics:

  • The new line of notebooks starts at $549, with two other models featuring AMD's Turion 64 processor starting at $704 and $859, respectively.
  • The AMD-based notebooks will be available for shipping in December, which is expected to give Dell a competitive edge in the market during the holiday season.
  • Over the past two years, Dell had come under increasing pressure from customers who asked for AMD's processors because they had similar performance at lower prices than Intel's.
  • Intel has delivered new, enhanced chips to counter AMD's performance advantage, but analysts believe the competition will remain fierce in the foreseeable future.

Sources:

  • Current Analysis
  • Endpoint Technologies Associates Inc.