When Dell, Inc. (NASDAQ: DELL) and Intel, Corp. (NASDAQ: INTC) appear to have a somewhat-strained relationship, bad things are on the horizon most likely. Intel's Viiv integrated platform, which was originally displayed prominently on Dell's PCs, has since been a marketing message mess-a-thon and is not getting top billing -- or any billing -- on Dell's newer Dimension and XPS desktop computer systems. In fact, consumers of these newer systems would not even know Intel's Viiv is in the system, until they unbox it at home or the office. What's happened here with Intel and Dell? I'd be thinking that the mass cross-marketing dollars the two give each other would still be in effect.
Dell's recent use of AMD processors most likely has caused a de-emphasis in Intel processors, which is not to be taken lightly since Dell is the world's largest PC manufacturer. From a strictly consumer standpoint, I believe Intel and AMD processors are commodities and have been for a while, so it was a very good decision on Dell's part to finally introduce AMD processors into its line.
A few weeks ago, I purchased a Dell Dimension E521 from dell.com with an AMD Sempron processor, which was just after Dell had released newer PCs with AMD chips. After reading that the Sempron is a lower-capability Athlon chip, and with the price being below $330, I thought it was perfect for a secondary PC. I received the unit about a week later and it's as snappy and efficient at the tasks I need as the five-months-old Pentium 4 machine sitting here.
The reason I did not select an Intel processor? None was offered with the specific Dimension E521 system I ordered and the Intel equivalent in a Dimension started at a few hundred dollars more. From this consumer's standpoint, AMD=cheaper and very capable, while Intel=more expensive and more than was needed. I'm not sure if many other customers are thinking like this when purchasing newer PCs at rock-bottom prices, but I'm sure some are.
With Dell dropping Intel's Viiv off at the door before going to the party, perhaps this is the start of a little feud between the leaders in their respective fields.
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Reader Comments (Page 1 of 1)
10-13-2006 @ 12:53PM
Gary E. Sattler said...
Brian, I'll add an angle to your analysis from my limited marketing point of view.
Perhaps Dell had seen the current Intel legal issues regarding patent compromise on the horizon and they sought to distance themselves in order to avoid a public perception that they could be involved?
AMD processors might actually have been a backup plan that blossomed into something Dell never expected.
No matter how I look at it, it looks good for both consumers AND Dell.
In my humble opinion.
10-13-2006 @ 12:59PM
Brian said...
Hmm, Gary -- interesting addition there. You could very well be right. I do enjoy the fact that Dell is giving its customers a choice after all this time (I opted for an AMD system), so having redundancy is always good. Perhaps Dell knew when to play that card. If so, they played it well.
Regards,
Brian
10-13-2006 @ 3:35PM
John said...
HP provides competitive pricing for AMD/Intel models. Would've been better than your Dell also, AMD or Intel.
10-20-2006 @ 11:55PM
Aaron said...
Intel or AMD? Though cheaper, I find that AMD is indeed as capable as intel in delivering the goods. My secondary PC uses an AMD Sempron too, though my main PC has an Intel Core DUo. Although the years in between the two are more or less a year, the AMD still performs great. WHile the intel one performs just a tad higher. Performance for buck goes to AMD. This is great news for consumers and dell as well.