Saturday, February 9, 2008

What Happened to Dell's AMD-Based Systems - Dell tries to shed some light on the incident

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Dell has just retired all its AMD-based computing systems from its online store earlier this week. The only three available AMD-powered products feature a small note asking the users to "Shop for Dell computers with AMD processors in retail stores. See our retail partners for details. Computers with AMD processors are not available online."

This may seem the ending of a beautiful business relationship that has paid off for both of the parts. Dell's decision comes immediately after it has updated its XPS notebook line to "Penryn", which is strange enough.

However, Dell refuses to admit that it is slowly phasing out its AMD-based offer, except for its online store. "We have not walked away from AMD," Anne Camden, a spokeswoman for the company. "AMD-based Inspirons are now available to our retail partners, and not available on Dell.com." Dell has just shifted its AMD-based Inspiron consumer notebooks to its retail stores, where they belong.

According to the company, the online shop will continue to distribute enterprise-class products based on AMD processors: the Vostro, Latitude, and PowerEdge servers. Inspirion desktops also vanished from the website offering. "We are constantly adjusting product offerings and how we can sell those product offerings," Camden said. Dell made the transition a week ago, so adjusting their business model is not too much a good excuse. Dell is known for mixing business with personal opinions: if the company does not like a manufacturer for various reasons, it is immediately cut off.

Selling PCs in the retail manner can be regarded as a worth-mentioning disadvantage. The systems come pre-configured and changes or customizations are not quite possible beyond this point. The online distribution method allows Dell's customers to pick additional hardware to be included in the computing system.

Dell issued an official statement to explain the situation. Removing AMD products might not be quite a wise idea, given the fact that Dell does not enjoy the love and appreciations that make some other company's customers tattoo bitten apples on miscellaneous part of their body.

"To ensure we deliver the best value to our customers, Dell regularly adjusts its product offerings, and how customers can purchase those products. Currently the majority of our consumer AMD-based systems are available through our retail partners such as Wal-Mart, Best Buy and Staples, and through telephone sales. Dell also sells a range of AMD-powered business notebooks, desktops and servers online. Certain product ranges or models may only be available through specific channels such as retail or phone. We are committed to the AMD product lines as a long-term partner to provide the maximum choice for our customers."

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