For Dell and AMD, a tantalizing question

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Dell and Intel are a monopoly period!

Here is the cold hard facts Dell sells billions of dollars worth of hardware every quarter. For a shop with a few machines it does not really matter if they are all the same but if you have a large corp that has a few hundred or several thousand machines then it makes sense to deal with one vendor. That way all machines and parts are interchangable.

The point is, for most large companies Dell/Intel is a done deal. For most mundane business uses a bland Intel/Dell box is fine. So there is zero incentive for Dell to change and it will always be that way.

There is simply no need to complicate things by changing cpu vendor. By changing cpu Dell would have to change mb and then perhaps other parts requiring a lot of cost in manufacturing, in arranging new contracts with new vendors for new parts and on and on. Financially there is no gain in doing that, since it would not in any way improve the bottom line. At this point in time there is zero chance of a supply problem with Intel so Dell has no need to entertain AMD.

The point is from a practical standpoint DELL has a monopoly. Sure DEll has some competitors if you can call them that, they are mostly annoyances. Dell has the lions share of the market, Intel chips do the job, changing cpu's won't change the bottom line much. When you have 80% plus of the market why worry about the small market that wants AMD powered machines?

From where I sit Dell will never sell an AMD machine at least anytime in the foreseeable future. So all these articles are mostly a waste of words. Companies like AMD only exist to foster the illusion that there is no monopoly. For all intents and purposes Windows/Dell/Intel own the PC market. Small competitors like AMD will always be allowed and encouraged to exist to keep the government regulators at bay.

As in the case with AMD they may have some engineering achievments over intel but the basic use of the cpu and it's technology have reached maturity so incremental improvements by AMD or intel will not have much effect on the overall market. A few years from now the 32/64 bit or dual core chip will, whether it came from AMD first or Intel will not matter because all of Intel's chips and AMD chips will be 64 bit chips running with at least dual cores and the overall market percentage that each company claims will remain more or less unchanged.

Posted by: Robertbrice   Posted on: 10/26/04 You are currently: a Guest | Members login | Terms of Use

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