Dell goes AMD- the real deal?

[haelduksf]

http://www.theinquirer.net/?article=32628

According to the Inq, dell will have a full line of AMD desktops and laptops for the back to school season.

You think this is the real deal, or the Inquirer making up stories again?

 

[Henny]

It's likely that Dell could buy more AMD products over time but this seems fishy. For Dell to offer a broad AMD lineup for back to school this deal would have had to be struck months ago and we would have heard plenty of news/rumors/etc prior to today.

The recent Opteron deal won't result in Dell having product until very late '06 yet BTS is basically now from a supply line standpoint.

Did they mean BTS '07??

 

[GundamSonicZeroX]

That's kinda old, but still good news.

 

[haelduksf]

Originally posted by: GundamSonicZeroX
That's kinda old, but still good news.

It's about 5 hours old This is for laptops and desktops, not just 4-way servers.

Originally posted by: Henny
It's likely that Dell could buy more AMD products over time but this seems fishy. For Dell to offer a broad AMD lineup for back to school this deal would have had to be struck months ago and we would have heard plenty of news/rumors/etc prior to today.

The recent Opteron deal won't result in Dell having product until very late '06 yet BTS is basically now from a supply line standpoint.

Did they mean BTS '07??

That's not what the article seems to imply- it sounds like this was signed some time ago, and news is only leaking out now. I find it hard to believe as well- I don't know what orifice AMD could pull "millions" of CPUs from, since as I recall they have two fabs being retooled at the moment.

 

[GundamSonicZeroX]

Originally posted by: haelduksf

Originally posted by: GundamSonicZeroX
That's kinda old, but still good news.

It's about 5 hours old This is for laptops and desktops, not just 4-way servers.

Originally posted by: GundamSonicZeroX
It's likely that Dell could buy more AMD products over time but this seems fishy. For Dell to offer a broad AMD lineup for back to school this deal would have had to be struck months ago and we would have heard plenty of news/rumors/etc prior to today.

The recent Opteron deal won't result in Dell having product until very late '06 yet BTS is basically now from a supply line standpoint.

Did they mean BTS '07??

That's not what the article seems to imply- it sounds like this was signed some time ago, and news is only leaking out now. I find it hard to believe as well- I don't know what orifice AMD could pull "millions" of CPUs from, since as I recall they have two fabs being retooled at the moment.

That 2nd quote wasn't by me. Anyways, well, I guess I just saw it coming.

 

[haelduksf]

Oops, my bad. Fixed.

 

[Duvie]

Originally posted by: haelduksf

Originally posted by: GundamSonicZeroX
That's kinda old, but still good news.

It's about 5 hours old This is for laptops and desktops, not just 4-way servers.

Originally posted by: Henny
It's likely that Dell could buy more AMD products over time but this seems fishy. For Dell to offer a broad AMD lineup for back to school this deal would have had to be struck months ago and we would have heard plenty of news/rumors/etc prior to today.

The recent Opteron deal won't result in Dell having product until very late '06 yet BTS is basically now from a supply line standpoint.

Did they mean BTS '07??

That's not what the article seems to imply- it sounds like this was signed some time ago, and news is only leaking out now. I find it hard to believe as well- I don't know what orifice AMD could pull "millions" of CPUs from, since as I recall they have two fabs being retooled at the moment.

What 2 Fabs are being retooled??? Fab36 is not being RE-tooled it is being ramped up for the first time and should hit ful capacity in Mid 07 (based on reports I saw back in April).....So link me to that info or tell me the other 2 fabs please....

I for one can't believe they can meet Dell demands as well with current high demand in others areas, but want to keep ppl honest and back up what they say

 

[haelduksf]

Originally posted by: Duvie


What 2 Fabs are being retooled??? Fab36 is not being RE-tooled it is being ramped up for the first time and should hit ful capacity in Mid 07 (based on reports I saw back in April).....So link me to that info or tell me the other 2 fabs please....

I for one can't believe they can meet Dell demands as well with current high demand in others areas, but want to keep ppl honest and back up what they say

http://www.techpowerup.com/?13596

HKEPC via TechPowerup

I assumed that the changeover to 65nm would result in a drop in production, but I'm hardly an expert.

 

[Duvie]

Originally posted by: haelduksf

Originally posted by: Duvie


What 2 Fabs are being retooled??? Fab36 is not being RE-tooled it is being ramped up for the first time and should hit ful capacity in Mid 07 (based on reports I saw back in April).....So link me to that info or tell me the other 2 fabs please....

I for one can't believe they can meet Dell demands as well with current high demand in others areas, but want to keep ppl honest and back up what they say

http://www.techpowerup.com/?13596

HKEPC via TechPowerup

I assumed that the changeover to 65nm would result in a drop in production, but I'm hardly an expert.

I dont believe Fab 30 is retooling yet (or definitely not in full mode since it is expected to still be popping out current 90nm offerings.....Also Fab36 was just opened and they likely have not fully filled the space so it is likely only a portion of the fab will have to be retooled from any 90nm operations and has been tooling for 65nm for awhile now....

While AMD is definitely in full 65nm ramp up they still need 90nm support and hence why they recently had announcements about using 3rd party fabs to help in that continual demand...

 

[ND40oz]

Dell will not have an AMD lineup in time for back to school. The only reason they have 4 way boxes coming in Nov. is because they had enough customers say they wanted 4 way opterons and went to competitors products. Currently, there are not enough people with big enough voices beating down dells doors saying we want a full AMD lineup or we're going elsewhere.

 

[the Chase]

I think Intel saying no price breaks anymore for the OEM's sent Dell over the edge......

 

[unfalliblekrutch]

Originally posted by: the Chase
I think Intel saying no price breaks anymore for the OEM's sent Dell over the edge......

When did they say this? Article?

 

[SuperSix]

I guarantee Dell has been stockpiling for awhile.

 

[AnonymouseUser]

Originally posted by: ND40oz
Dell will not have an AMD lineup in time for back to school. The only reason they have 4 way boxes coming in Nov. is because they had enough customers say they wanted 4 way opterons and went to competitors products. Currently, there are not enough people with big enough voices beating down dells doors saying we want a full AMD lineup or we're going elsewhere.

Nobody wants Pentium 4/D or Netburst Xeons anymore. Even Intel fanboys want the new Woodcrest or Conroe and are delaying purchasing new computers for that. In the meantime, this is killing Dell. Conroe won't be more than 18% of Intel's shipments by Q4 (per Intel), and Dell won't be able to survive if they wait for the Conroe.

Intel forced Dell's hand by pumping WCM and subsequently killing demand for their current products.

 

[Henny]

Originally posted by: AnonymouseUser

Originally posted by: ND40oz
Dell will not have an AMD lineup in time for back to school. The only reason they have 4 way boxes coming in Nov. is because they had enough customers say they wanted 4 way opterons and went to competitors products. Currently, there are not enough people with big enough voices beating down dells doors saying we want a full AMD lineup or we're going elsewhere.

Nobody wants Pentium 4/D or Netburst Xeons anymore. Even Intel fanboys want the new Woodcrest or Conroe and are delaying purchasing new computers for that. In the meantime, this is killing Dell. Conroe won't be more than 18% of Intel's shipments by Q4 (per Intel), and Dell won't be able to survive if they wait for the Conroe.

Intel forced Dell's hand by pumping WCM and subsequently killing demand for their current products.

You're ignorant to the concept of market segmentation. I agree that the enthusiasts want Conroe but that's a small segment of the market. (probably 18%).

The masses want low cost $500 PC's and Dell seems to only care about the low end these days. (ie Celerons, older generation P4's, etc) If AMD cut them a deal for the low end, then Dell could add some low end AMD SKU's. (however not in time for this BTS)

 

[Henny]

Originally posted by: SuperSix
I guarantee Dell has been stockpiling for awhile.

Dell doesn't stockpile. It's inconsistent with their mfg model.

 

[ND40oz]

Originally posted by: Henny

Originally posted by: SuperSix
I guarantee Dell has been stockpiling for awhile.

Dell doesn't stockpile. It's inconsistent with their mfg model.

True, two week stock on parts, ship it as soon as it comes in. Keeps storage costs low and profit margins high because they can adjust price quickly as parts prices change.

 

[Keysplayr]

Originally posted by: AnonymouseUser

Originally posted by: ND40oz
Dell will not have an AMD lineup in time for back to school. The only reason they have 4 way boxes coming in Nov. is because they had enough customers say they wanted 4 way opterons and went to competitors products. Currently, there are not enough people with big enough voices beating down dells doors saying we want a full AMD lineup or we're going elsewhere.

Nobody wants Pentium 4/D or Netburst Xeons anymore. Even Intel fanboys want the new Woodcrest or Conroe and are delaying purchasing new computers for that. In the meantime, this is killing Dell. Conroe won't be more than 18% of Intel's shipments by Q4 (per Intel), and Dell won't be able to survive if they wait for the Conroe.

Intel forced Dell's hand by pumping WCM and subsequently killing demand for their current products.

Nobody wants P4/D anymore? Those who buy Dell generally do not care "what kind" of CPU comes with it. A small percentage do I'm sure, but most are perfectly happy with Celerons for web browsing, email, light apps, paying their taxes. yada, yada.

THE ONLY people who are putting off purchasing Pentium 4/D's would be people like us in here. Most of us enthusiasts, and some enthusiastic noobs. Small percentage. You should try to keep this news in perspective. How things affect us in here and in forums like this is not the same as it affects the rest of the world. Joe Schmo couldn't care less if he had a Pentium4/D or a Conroe or a Celeron. The ONLY thing I can see them looking for is the "Intel Inside" moniker.

 

[TrevorRC]

Originally posted by: unfalliblekrutch

Originally posted by: the Chase
I think Intel saying no price breaks anymore for the OEM's sent Dell over the edge......

When did they say this? Article?

Public announcement. Intel said "one unified price" for all OEMs and Mom&Pop shops.

Meaning, your store down the street gets the same price as Dell. On the surface, it looks like a good deal for the normal shops--but the OEMs get a HUGE shaft. Who do you think buys the vast majority of the CPUs ? It was a clever way to jack up prices, IMO.

--Trevor

 

[the Chase]

Originally posted by: unfalliblekrutch

Originally posted by: the Chase
I think Intel saying no price breaks anymore for the OEM's sent Dell over the edge......

When did they say this? Article?

http://www.theinquirer.net/?article=32375 - yeah the inquirer blah blah but it was on a few different websites.

 

[irwincur]

Shouldn't be a huge surprise. There were many good rumors months ago concerning Foxconn, Dell, and AMD stockpiling in Taiwan. Would indicate that this deal was inked about January or so and the fruits are just about to show.

I think Dell realized that as soon as they went AMD they might as well sell as many as possible because regardless of amount - Intel would be pissed. And well, with Intel's new unified pricing, it looks like they are, no more massive discounts for Dell, there is now more of a level playing field.

I have to say though, Dell must have some decent insider knowledge about AMD's upcoming products. I just can't see them making the jump when they were well aware of Intel's new plans.

 

[haelduksf]

I wonder if it would be worth it for AMD to contract out a Dell order to Chartered or TSMC or something.

Or, we could combine two pie-in-the-sky rumours and guess that AMD will buy out ATi and use their capacity. It all fits... (well, except that ATI doesn't really have a bunch of 90nm habs lying about, but that's no fun!)

 

[HurleyBird]

ATI is a fabless company.

 

[pcoffman]

Originally posted by: TrevorRC

Originally posted by: unfalliblekrutch

Originally posted by: the Chase
I think Intel saying no price breaks anymore for the OEM's sent Dell over the edge......

When did they say this? Article?

Public announcement. Intel said "one unified price" for all OEMs and Mom&Pop shops.

Meaning, your store down the street gets the same price as Dell

Update to the "unified" pricing: http://www.theinquirer.net/?article=32650:

"it is a little more complex than we were first told.

It isn't so much flat as it is flat tiers ... one person who is in a position to know, when asked about pricing Dell the same as Al's Breakfast and CPU Emporium, he/she/it said roughly, "You just don't do that to them" ... what the channel pays a hair under $300 for, the mid-tier players pay under $250, and Dell, HP and IBM types pay that same hair under $200. The numbers work out that the big guys pay around 60 per cent as much as the little guys for mainstream CPUs".

So, presumably the larger the quantity purchased, the better the price, but the same rates apply regardless of who buys. This is fair.

 

[Viditor]

Originally posted by: pcoffman
Update to the "unified" pricing: http://www.theinquirer.net/?article=32650:

"it is a little more complex than we were first told.

It isn't so much flat as it is flat tiers ... one person who is in a position to know, when asked about pricing Dell the same as Al's Breakfast and CPU Emporium, he/she/it said roughly, "You just don't do that to them" ... what the channel pays a hair under $300 for, the mid-tier players pay under $250, and Dell, HP and IBM types pay that same hair under $200. The numbers work out that the big guys pay around 60 per cent as much as the little guys for mainstream CPUs".

So, presumably the larger the quantity purchased, the better the price, but the same rates apply regardless of who buys. This is fair.

This follows pretty much what AMD have been demanding with the lawsuit...a single multi-tier structure for all company rebates. In other words, no more rebate levels tailored to individual companies...rather, it will become a universal sales target (if anyone sells x number of processors they cost $y).