Dell announces AMD powered PCs

A chairman claims firm is doing the right thing for customers

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By  Published  September 1, 2006

Dell’s relationship with AMD took another step forward last month when the world’s biggest computer maker announced it would be launching a range of desktops powered by AMD processors.

But even the announcement that Dell is going to use chips other than those made by Intel in its desktops, could not provide a silver lining for the firm, following the disclosure of a 51% drop in second quarter net income and news that the vendor is currently under investigation by the US Securities and Exchange Commission for its accounting practices.

Then there is the matter of the 4.1 million faulty notebook batteries that Dell has recalled — billed as one of the largest ever electronics product recalls in history — because of the fire risk that they pose and the mounting concern surrounding the standard of the vendor’s customer service.

“There are a number of things a company might do in this situation — run and hide, wait for the regulators or claim it’s not a problem,” chairman Michael Dell told a recent press conference in Hong Kong.
“We’ve exercised an abundance of caution. Beyond all the hysteria, we’re doing the right thing for our customers, and they’ll appreciate it in the long run,” he claimed.

The only company feeling worse than Dell following the reporting of second quarter results for its 2007 fiscal year was Intel, which over the last few months has seen its biggest customer start using its rival’s technology in almost every product line — Dell notebooks powered by AMD processors are reportedly to be just around the corner.

“It’s unfortunate,” Bill Kircos, an Intel spokesman told Cnet online news service. “…it’s up to us to convince Dell, their customers and the tens of thousands who sell Intel technology that Core Duo and Intel Inside is the best choice for any computing need,” he added.

AMD, on the other hand, was revelling at thought of all the potential market share it could win off its rival thanks to the deal.

“Dell’s wider embrace of AMD processor-based offerings is a win for Dell, for the industry and most importantly for Dell customers,” claimed Marty Seyer, senior vice president of the chip maker’s commercial business unit, in a statement.

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