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Dell Moves To AMD Processors

Dell Moves To AMD Processors

Dell which has used only Intel processors until now, has announced that it would begin using a chip made by Advanced Micro Devices, as part of a broader plan to improve its flagging sales and market share.

The move has seen Intel shares fall and AMD’s rise.

Dell who are struggling to increase sales, said that by the end of the year, it would start using an AMD Opteron chip in one of its high-end servers with multiple processors. “It’s a fairly small category,” Kevin B. Rollins, chief executive of Dell, said on a conference call with analysts.

He did not rule out using AMD chips in Dell’s PCs or in other servers, but he said that Intel would remain the supplier of the “vast majority of processors we use.” Rollins outlined several personal computer products that the company planned to introduce this year, and all of them will use Intel chips.

Dell, the world’s largest seller of personal computers, had previously said growth suffered in the quarter as it cut prices to gain market share and spent more on improving customer service. “The competitive environment has been more intense than we had planned for or understood,” said Rollins.

Rollins said Dell planned to accelerate efforts to reduce costs by $3 billion so it could continue to reduce prices where needed.

“We’ve allowed our growth essentially to come to a stall,” he said

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