Advanced Micro Devices Inc (AMD)

[bobs10]

A couple of thoughts

I'm sure Hector realizes how inconsistent the Dell/INTC business model is with AMD's. I'm also sure Mickey wouldn't consider selling Opterons unless there was some sort of competitive advantage, something AMD isn't going to provide. So why the comments about Dell coming on board by next year?

Well, it does a couple of things. First, it highlights in a very public way, that Dell doesn't sell Opterons or any AMD products for that matter. It informs any user, thinking about an AMD product, that they will have to go to someone other than Dell. There's no sense in the user even contacting Dell and letting Dell try to bait and switch, or some other tactic.

Second, it puts pressure on existing partners to fill out their lines and make sure all available AMD capacity is accounted for. AMD is going to have a lot of 90 nm capacity coming on line very soon, and this is going to require the existing partners to take on more product. The biggest problem I see for AMD right now is a lack of demand for the A64's. HPQ/SUN are probably very receptive to a little Dell fear.

Personally, I think Dell is going to have to be hurting a lot before Mickey even starts to consider an AMD relationship. So far any Opteron damage seems to be largely theoretical, as Dell continues to grow at a nice pace. If Dell ever comes on board it's going to be a long way down the pike.

However, it's nice to see Hector playing the Dell card instead of Mickey playing the AMD card for a change.