Dell says cost is key factor in decision to buy only Intel chips

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Published: 12:00am, 9 Aug 2005

Dell, the world's largest personal computer maker, says the economic advantage of using Intel processors justified its long-standing practice of not buying chips from alternative supplier Advanced Micro Devices (AMD).

Dell president and chief executive Kevin Rollins said it regularly reviewed its suppliers, and the preference for Intel was based on 'fundamental economics'.

'We believe the industry is better off by having multiple suppliers in every category ... but we have to look at our own self-interest,' he told the South China Morning Post. Dell looked at three factors - technology, customers and cost - and had so far found no compelling reason to move to an AMD platform, he added.

AMD has ratcheted up its scrutiny of Intel, the world's largest semiconductor supplier. On June 27, AMD filed a 48-page complaint against Intel in a United States federal district court. It alleged that Intel had maintained its monopoly in the world market for x86 microprocessors by coercing customers away from AMD.

It also identified 38 companies that were alleged to have been 'victims of coercion' by Intel - including large-scale computer makers, small system builders, wholesale distributors and retailers - across three continents. AMD's complaint is at www.amd.com/breakfree.

The stakes are high for AMD and Intel. At present, x86 microprocessors run the Microsoft Windows, Solaris and Linux families of operating systems.

Apple Computer recently announced it would switch exclusively to x86 processors to run the Macintosh operating system software from next year.