Toshiba Turns Down Dell to Work With AMD

May 29, 2007
The multinational Japanese company, dealing with high technology and electronics, Toshiba, looks forward to purchase microprocessors from the American manufacturer of semiconductors, Advanced Micro Devices. The Japanese giant is ending its collaboration with Intel for the supply of chips.

It is worth mentioning that currently Toshiba is the fourth-largest laptop PC maker in the world. The company's officials stated that they expects to put the processors produced by AMD in about 20% of the notebooks that Toshiba sells in the both U. S. and Europe.

Before Toshiba made its move to put AMD processors, Dell made an announcement that it will no longer buy microprocessors from Intel (the partnership of the two lasted for about two decades), instead Dell would start using chips produced by Advanced Micro Devices. It is important to note that Intel is a far larger rival of the Sunnyvale, California based firm, having a market share of about 80%.

Macquarie Securities analyst Yoshihiro Shimada outlined that today there is a new way of thinking that competition is the one to be introduced even in the field of processors production, especially when there are no big differences in product specifications. "This could be a message that an era in which Intel took the lion's share of microprocessor profits as the king of PC chips is over," Yoshihiro Shimada said.

Japanese company's spokeswoman Yuko Sugahara stated that Toshiba aims towards putting AMD chips in moderate-priced standard models, developed for both individual and corporate clients.

According to the report provided by Nikkei business daily, the prices of PCs equipped with AMD processors are expected to be sold for up to 10,000 yen (), which is less than comparable models.

The Japanese giant will set AMD chips in some models that are to be released this summer.

Gadgets InfoNIAC

posted by:

May 30, 2007 01:29 AM » posted by: Me

Excellent news for AMD and Toshiba.

This is one more sample that companies (like Toshiba) want to break free from monopolies that can hurt their businesses in the long term.

Happy venture.

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