Dell Shifts its AMD Systems to Retail Sales
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Dell has trimmed its online selection of AMD-based consumer systems, focusing instead on offering Intel-based PCs.
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The computer maker will sell its PCs through Digital China, while Dell will try to target upscale consumers in the country.
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(InfoWorld) - Dell will begin selling two models of its desktop PCs at Wal-Mart Stores on June 10, fulfilling a series ofÂ recent hints from CEO Michael DellÂ that the company wouldÂ move beyond the direct sales modelÂ that once made it the world's largest PC vendor. Wal-Mart will sell the desktops for less than $700 each in its thousands of stores located in the U.S. and Puerto Rico, according to a Wal-Mart statement issued Thursday. The store also said it expected to offer additional Dell PC models in its Sam's Club and Wal-Mart Canada stores, but did not provide model names or dates. The Dimension Multimedia Desktop is the first model to reach Wal-Mart shelves, chosen as a good match for shoppers' demands for value pricing and proven technology, according to a statement by Gary Severson, Wal-Mart's senior vice president for entertainment and electronics. Wal-Mart already sells desktop PCs from Hewlett-Packard, Acer, and Gateway, as well as notebooks from HP, Acer, Lenovo, Toshiba, Sony, Asus, and several smaller vendors. The store also sells monitors, PDAs (personal digital assistants), and peripherals. The strategy marks a major change in how Dell sells computers. Until now, the company has taken orders over the phone or via its Web site, allowed customers to choose their own specifications and then assembled a custom-built PC for each user. That approach allowed Dell to cut its storage and logistic costs far below its competitors, undercut their prices and win new market share. But the direct-sales business model is no longer such an advantage, since competing PC vendors say they have learned their lesson and trimmed their own costs. And critics note that buyers in developing countries don't trust their postal systems enough to purchase expensive PCs through the mail. "Customers want more and new ways to buy our products and we plan on meeting their needs on a global level. Offering Dell Dimensions in Wal-Mart is a great example of this approach," said Dell spokesman Dwayne Cox in an e-mailed statement. "While we can't get into specifics, in the coming quarters there will be additional activity in support of this move into global retail. Today's announcement with Wal-Mart represents our first step. Stay tuned," he added. Dell fell behind rival HPÂ in 2006 in PC sales, and has struggled with a series of poor earnings reports and lawsuits. In an attempt to reverse those results,Â Michael Dell returned to his job as CEOÂ in January, and immediately wrote a series of corporate memos pledging broad changes in the company. Now he has acted on those words. Â
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Dell has begun selling two PCs and a notebook pre-installed with the Ubuntu Linux distributions, responding to demand from Linux enthusiasts on its IdeaStorm site.
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Dell Inc. (DELL.O), the world's largest PC maker, could announce an expanded selection of its consumer electronics line in the next several weeks, a retail industry analyst said on Wednesday.
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By REXCRUM  SAN FRANCISCO - Dell Inc., the world's No. 2 personal-computer company, said Thursday that it will begin selling PCs on the shelves of retail giant Wal-Mart Stores Inc., in a deal that breaks with its longtime direct model of making computers on order for customers.
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Dell Inc.  is leaving the LCD television business to focus on its core PC products amid an ongoing company overhaul by founder Michael Dell, Taiwan media reported on Thursday.
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Dell on Monday said it had cut prices by as much as fifth for a range of products aimed at US corporate customers, as the computer maker passed along savings from cheaper components.
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Sales of personal computers increased faster in the fourth quarter of last year than expected, driven by lower prices and the move by Dell to sell through retail stores.
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(InfoWorld) - After watching its market share for the North American desktop PC market slip in a soft third quarter, Advanced Micro Devices Inc. (AMD) will seek greater profits in 2007 throughÂ a new family of quad-core server chipsÂ and itsÂ acquisition of graphics chip maker ATI. "From a customer perspective, our integration is completed," said Henri Richard, AMD's chief sales and marketing officer during the company's annual analyst meeting in New York on Thursday. The companies still face several years of work to reach their goal of launching a combined processor and graphics chip called Fusion, but since closing the deal in October, they have already combined sales forces, supply chains and manufacturing facilities. In the short term, that will enable "the new AMD" to benefit whenÂ Microsoft's launch of the Windows VistaÂ OS sparks increased demand for visual capability in PCs. "Vista will change the paradigm of how people relate to their PCs and their criteria for selecting devices in 2007. That emphasis on a more visual experience will give AMD an edge," Richard said. AMD will also use the ATI acquisition to enter the fast-growing consumer electronics market in 2007, selling more video processing chips as demand rises for digital and high-definition TV, and selling more embedded chips as handheld devices converge the capabilities of cell phones and PCs, he said. AMD expects 19 percent growth for its chips used in the handheld sector and 44 percent growth in digital TVs. In the meantime, AMD will focus on its bread-and-butter product, the Opteron server chip. AMD plans to increase its revenue from microprocessors and chipsets by 20 percent in 2007, twice its prediction for the industry's growth rate. Chip-making rival Intel Corp. regained some ground in the desktop and server markets in recent months with its Core 2 Duo and dual-core Woodcrest Xeon chips. But AMD is poised to defend its turf. The company demonstrated a four-chip server using laboratory versions of its "Barcelona" quad-core Opteron chip at the meeting. Compared to AMD's own dual-core server chips, the design marks a 40 percent to 70 percent improvement in processing power and a 60 percent improvement in performance per watt. AMD plans to launch that chip for high-end servers in the second half of 2007, and update it with a "Shanghai" model in 2008. The company also plans to expand from its stable of processors designed for two, four and eight-chip servers in 2007 by launching "Budapest,"a quad-core Opteron chip designed for the single-processor servers used in the small business market. AMD will also improve its Turion and Sempron notebook chips, extending battery life with a more efficient "Hawk" model in 2007 and "Griffin" model in 2008. Together, those products will help return AMD to a better mix of products, Richard said. "We had been heavily reliant on the desktop sector. Now our server and laptop segments are growing faster, so we will soon reach the industry average." AMD has already started designing an eight-core server chip, set for release in three years, but has no plans to build chips with even more cores. "I think most people recognize the industry made a mistake getting into the megahertz wars, because we should have been more focused on the efficiency of the overall platform. And we would make another mistake if we got into a core war," said Phil Hester, AMD's chief technology officer. "You'd scratch your head if someone tried to sell you a 16- or 32-cylinder car and ask 'Why on earth do I need this?' You really need something whose capabilities are matched to what you'll use it for every day."
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Direct sales aren't working the same magic they once did for the PC maker. Can it now cash in at retail?
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Dell Inc. DELL.O on Monday said  it had cut prices across a broad range of products aimed at  U.S. corporate customers as the computer maker passed along  price declines in underlying components.
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Dell said Monday that it will begin selling its lineup of computer products through business supply retailer Staples beginning November 11.
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(InfoWorld) - Dell Inc. Tuesday pointed to its adoption of processors from Advanced Micro Devices Inc. (AMD) for pushing it to US$677 million in profit for the third quarter, though the company has delayed reporting final numbers due to an accounting investigation by the U.S. Securities and Exchange Commission (SEC). Dell's preliminary results mark anÂ improvement over the third quarter last year, when it reported $13.91 billion in revenue and a profit of $606 million. Dell reported revenue of $14.38 billion for the quarter, which ended Nov. 3, 2006. Dell did not offer an official comparison to the year-earlier figures, however. Dell reported earnings of $0.30 per share for the third quarter in 2006, beating the estimates of analysts who had expected Dell to earn $0.24 per share on revenue of $14.44 billion, according to a survey by Thomson Financial. The company was scheduled to report its earnings last Thursday, but delayed the move because it was trying to cooperate with investigations by the SEC and the U.S. Attorney for the Southern District of New York. Company leaders had cited the same reason after they missed a deadline for notifying the SEC of their second quarter earnings. They have still not filed that report, called a Form 10-Q. Company executives were not available to comment on the results. The company filed the numbers in a press release only, skipping the traditional conference call with reporters and analysts. Dell pointed to its success in selling computers powered by AMD processors for its impressive numbers. After missing its earnings target for the first quarter, Dell said in May it would finally diversify from selling computers with chips from Intel Corp. Still, Dell is having a rocky year. In June, Chief Executive Kevin Rollins promised to rebound from weak earnings by investing $100 million in customer service and by using fewer rebates in setting PC prices. But in August, Dell was forced to recall 4.1 million defective laptop batteries. Next, Dell acknowledged it was under investigation by the SEC, and, last week, lost its status as world's largest PC vendor to rival Hewlett-Packard Co.(HP). HP turned up the pressure last week when it reported net income of $1.7 billion for the fourth quarter, more than four times its mark for that period last year. Â
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Dell CEO Kevin Rollins sent a clear signal to Intel, saying in an interview that the company is likely to begin using Advanced Micro Devices (AMD) processors in some of its products.
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Dell Inc. plans to sell computers and other electronics gear at 1,400 Staples Inc. stores, the latest departure from the direct-to-customer business model pioneered by the No. 2 computer maker.
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Dell Inc. , the No. 1 personal computer maker and the best customer of leading computer chip maker Intel , is mulling using rival chips from AMD , its chief executive said on Thursday.