Dell Flirts With AMD While In Bed with Intel

The earlier rumors that Dell has plans to use AMD turns out to be true. Dell officially announced that it would be building AMD processors into its "Dimension" desktop computers and 2P server products. Dell's Chief executive Kevin Rollins hinted that AMD will not only fill a gap in their portfolio, but a ploy to force Intel's hand to drop its price. Smart thinking dell! Dell plans to build between 1 million to 1.2 million new AMD-based desktop systems and about 800,000AMD-based notebooks. So it's possible that AMD will score about 2 million processors in this deal. These numbers are still speculative because Dell hasn't confirmed whether future notebooks will sport AMD processors.

In other news, The Register reported that Dell's revenue increased by five percent this last quarter (over the same period last year) – at $14.1bn. While that may sound impressive, Dell wasn't satisfied the net income of $502m. This is a huge drop from $1.02bn last year. Most companies would be dancing for joy with a $502m net income, but poor Dell is used to a bigger profit.

UPDATE 2: Dell to ship AMD-based desktop PCs in September [TG Daily, via CrunchGear]