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Kevin B. Rollins

president & ceo, dell inc.

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Kevin Rollins addresses the Boston College Chief Executives’ Club of Boston.

Dell: We're open to using AMD chips

Dell's Chief Executive Kevin Rollins said on Thursday that he is open to selling computers that run on microprocessors from Advanced Micro Devices.

Dell, the world's biggest manufacturer of personal computers, currently uses microprocessors from No. 1 chipmaker Intel as the brains that run its machines.

Dell is Intel's biggest customer. "We're always open" to making changes, Rollins said. "We want the very best technology for our customers."

Rollins made the comment to reporters after speaking at a lunch sponsored by the Boston College Chief Executives' Club.

Paul Choquette (Chairman, Gilbane Building Company), Patrick Purcell (President, Herald Media, Inc.), David Barrett (CEO, Lahey Clinic), Charles Clough (Chairman & CEO, Clough Capital Partners), Father J. Donald Monan (Chancellor, Boston College), John Murphy (Chairman, President, & CEO, OppenheimerFunds, Inc.), Charles Baker (President & CEO, Harvard Pilgrim Health Care), and James Taiclet (Chairman & CEO, American Tower Corporation) enjoy to Mr. Rollins' address.

Industry analysts have long speculated that Dell might start offering customers the option of buying PCs that run on AMD microprocessors. Some analysts recently said that Dell may adopt AMD in servers, notebooks and desktops this year. Such a move might allow Dell to offer less expensive computers without hurting profit. Dell had slower-than-forecast revenue growth in 2005 as it lowered prices on entry-level computers.

"If ever there was a time when Dell needed AMD, this is probably it," said Nathan Brookwood, head of market research firm Insight 64. <

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Members of the press crowd around Mr. Rollins after his remarks.

Dell has experimented with AMD chips in its labs for years and come close to adopting the chips in computers, according to some sources. In November, Dell began selling individual AMD processors on its Web site.

The PC seller has occasionally used positive public statements about AMD to nudge Intel into making concessions, many analysts have said.

Article by Reuters
Thursday, January 12th, 2006