Dell responds to reports of AMD supply problems

— 12:49 PM on October 18, 2006

Word got out last week that Dell's sudden adoption of AMD processors in its Dimension desktops was wreaking havoc on the distribution channel and causing supply problems with smaller PC manufacturers. Dell has now talked to PC Pro about the subject, and it told the UK site that it has a "bountiful" supply of AMD chips:

Dell had previously refused to discuss the shortages, but at a briefing with PC Pro earlier today, the company claimed it had a bountiful supply of AMD processors. "The one thing we would have made sure of with AMD is that they could adhere to our demand. We haven't seen any significant issues in terms of supply. It's been very finely managed," said Adam Griffin, channel marketing executive at Dell.

Griffin does admit, however, that Dell's build-to-order policy may have come as a culture shock to AMD. "How we do business is different to how it [AMD] has dealt with partners in the past," he said.

Judging by Dell's statement and the multiple reports of shortages, AMD may very well be giving the PC giant priority and only supplying the channel with the remainder of its production.

Despite Dell's adoption of AMD processors, it's well aware of Intel's current advantage in the high end market. Griffin told PC World, "In the past, when we've been Intel only, we've struggled to match AMD's performance at the high end. The Core 2 Duo is showing better performance [than AMD's chips] at the moment. But AMD's next generation processors may change that again." Thanks to TR reader DrDillyBar for the tip.

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