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Dell puts AMD on the desktop
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Dell puts AMD on the desktop

by Andrew Charlesworth  on Aug 21, 2006
Tags: Dell | AMD | desktop
Dimension defects from Intel.
After a week of putting out fires of Sony's making, Dell has lit up the faces of AMD execs by expanding its range of AMD-based machines from servers to the desktop.

The move is seen as integral to Dell's drive for greater profitability, and a logical move in its battle with HP for PC market share.

While a Dell spokesman could not confirm plans to extend use of AMD processors "beyond the current server range", AMD was only too happy to announce the arrival of an AMD-spawned Dimension in September.

Dell will offer AMD processor-based Dimension desktop PCs by September, AMD said in a statement.

"Dell's wider embrace of AMD processor-based offerings is a win for Dell, for the industry and most importantly for Dell customers," said Marty Seyer, AMD senior vice president.

"Dell's plan to expand the AMD footprint serves as a powerful statement on the strength of the AMD processor roadmap, as well as the demand that exists for AMD technology in Dell products.

"We look forward to working closely with Dell in bringing to their customers the benefits of AMD64 technology, the industry's open innovation platform."

Dell earlier reported a second-quarter performance deemed "disappointing" even by its own chief executive, Kevin Rollins, and an ongoing Federal accounting investigation.

However, the company has retained its position as the world's number one PC maker, for which title it vies with HP regularly, notching up a 19.3 per cent market share in the second quarter, according to industry watchers IDC.

Dell's revenue increased five per cent year-on-year to $14.1bn for the second quarter of fiscal 2007, and profit was $605m, or 4.3 per cent of revenue.

The "limp" performance was put down to aggressive pricing in a slower-than-expected market, according to Dell's statement.

"While we are disappointed with the results for the quarter, we are taking the necessary actions to correct missteps and improve our results for the long term," said Rollins.

"Key actions include accelerating cost initiatives, increasing investments in service and support, and better pricing management."

The adoption of AMD processors is seen by PC market analysts to be part of Rollins' "necessary actions". HP uses AMD processors extensively in its servers, desktops and laptops.

Meanwhile, the Securities and Exchange Commission (SEC) announced that it will be launching an informal investigation into Dell's accounting practices, specifically revenue recognition and end of quarter practices.

Dell received a letter from the SEC about the irregularities a year ago, but has only recently detected "issues" during its own review of procedures.

While such news used to strike fear into the hearts of company execs, shareholders and customers in the post-Enron climate, informal investigations have become almost commonplace.

Copyright © 2009 v3.co.uk
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