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Processors

Dailytech reports that Dell have ordered 2 million AMD based computers; which breaks down into 1.2 million desktops and 0.8 million laptops. Is it not surprising that Conroes performance advantage is a negligible advantage as far as the OEMs are concerned; I ranted previously that a processors power only helps when enthusiast sales are concerned.


Dell currently has 18% of x86 based computers sales worldwide, from quarter two figures, and their new AMD line is reported to be around 18% of this. A simple calculation will reveal thatthat the marketshare for Dell made AMD systems should be just over 3% worldwide. This one market is probably vastly bigger than the enthusiast market, where AMD sales are suffering thanks to Conroe, too...

Despite this, AMD's profit margins are expected to be low; although, Conroe, or Core 2 Duo, has little to do with this. By purchasing ATi, AMD now has a large amount of debt to pay off, which will lower profits considerably, and AMD has been expanding their fab production this year. Combined these two investments will harm AMD's profits; although, this Dell deal will help AMD's recovery.

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