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Dell "open" to using AMD chips
"If ever there was a time when Dell needed AMD, this is probably it"

By Reuters

Published: Friday 13 January 2006

Dell's chief executive Kevin Rollins said on Thursday he is open to selling computers that run on microprocessors from AMD.

Dell, the world's biggest manufacturer of PCs, currently uses microprocessors from number one chipmaker Intel as the brains that run its machines. Dell is Intel's biggest customer.

"We're always open" to making changes, Rollins said. "We want the very best technology for our customers."

Rollins made the comment to reporters after speaking at a lunch sponsored by the Boston College Chief Executives' Club.

Industry analysts have long speculated Dell might start offering customers the option of buying PCs that run on AMD microprocessors. Some analysts recently said Dell may adopt AMD in servers, laptops and desktops this year.

Such a move might allow Dell to offer less expensive computers without hurting profit. Dell had slower-than-forecast revenue growth in 2005 as it lowered prices on entry-level computers.

Nathan Brookwood, head of market research firm Insight 64, said: "If ever there was a time when Dell needed AMD, this is probably it."

Dell has experimented with AMD chips in its labs for years and come close to adopting the chips in computers, according to some sources. In November, Dell began selling individual AMD processors on its website.

The PC seller has occasionally used positive public statements about AMD to nudge Intel into making concessions, many analysts have said.

News.com's Michael Kanellos contributed to this report