Intel exec claims all well with Dell

Dell’s decision to stop sourcing its chips exclusively from Intel has not changed relations between the companies, a senior Intel executive claimed last week.

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By  Administrator Published  February 28, 2007

Dell’s decision to stop sourcing its chips exclusively from Intel has not changed relations between the companies, a senior Intel executive claimed last week.

Sean Maloney, Intel’s general manager for sales and marketing, told IT Weekly that Dell’s decision to also source chips from rival AMD had “made no difference to the relationship whatsoever”.

“We have known Michael [Dell] since the very beginning and his management team, we are incredibly close to them and have been for many, many years,” Maloney commented.

Pressed specifically on whether Dell is now paying more for its chips from Intel, Maloney claimed “we didn’t change anything to do with our behaviour to them, other than wanting to be hungry to do more business with them.”

Dell only ended its policy of working exclusively with Intel late last year; many analysts said the lateness of the decision was a factor in the company’s recent poor performance, which cost CEO Kevin Rollins his job in January.

Intel has previously faced allegations that it paid Dell — and other hardware makers — loyalty rebates if they maintained exclusive relations with it. A shareholder lawsuit filed against Dell alleges that Intel paid the hardware giant up to US$1 billion a year between 2003 and 2006 in rebates, conditional on it not shipping computers containing AMD chips. Intel has dismissed the allegations.

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