Dell finally announced plans to put AMD processors in its desktop machines last month, but rumors are still rampant about the extent of the PC maker’s partnership with AMD. The latest report comes from DigiTimes, which heard from its sources that Dell intends to buy around 20 million processors from AMD between the fourth quarter of this year and the fourth quarter of next year. 16 million of those chips will find their way into Dell’s desktop and server machines, while the remainder will go into notebooks. The sources say the 20 million figure will represent a third of Dell’s overall PC sales (including desktops, notebooks, and servers,) which they expect to hit 55 million units in 2007.
If true, this sudden surge in demand might help AMD’s market share, but it could also cause shortages if the chipmaker’s output is insufficient. DigiTimes’ sources believe AMD will prioritize shipments to major PC vendors like Dell and HP if such shortages occur, meaning the retail market could get the short end of the stick.