IBM to discontinue use of AMD processors

IBM has decided to stop using Advanced Micro Devices’(AMD) chips in PCs sold in North America. No word has been given on the Middle East as yet.

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By  Robin Duff Published  August 15, 2001

IBM has decided to stop using AMD's chips in PCs sold in North America. The company will use AMD chips in computers sold in Asia, but an IBM spokesman confirmed recently that the company has dropped AMD’s Athlon and Duron chips from its desktop line-up for the US and Canada.

IBM has also curtailed marketing AMD-based computers in Europe, according to a spokesman. No word has been given on the Middle East as yet, but it seems likely that the Gulf region will follow suit. The decision to drop AMD came as part of an effort to streamline its consumer PC product line.

“The AMD processors are not currently offered in the United States,” said IBM spokesman Bob Page. “That choice ended in May 2001 when we simplified the product line to make it easier to understand.”

Intel is currently embroiled in a price war with AMD, resultant mainly from the respective releases of the AMD Athlon and the Intel Pentium 4. Intel is expected to release a 2GHz Pentium 4 and further price cuts later in the year, an example of the type of strategy which has prevented AMD from landing a deal to get its chips into the PCs of the top five PC manufacturers.

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