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Dell Supports Intel In Processor Wars

Source: Newsbytes

FRANKFURT, GERMANY, Newsbytes via Individual Inc. : The man who started computer mail-order juggernaut Dell Computer [NASDAQ:DELL] said his company would stick with using Intel Corp. [NASDAQ:INTC] processors at the heart of its computers. In recent days, companies like Advanced Micro Devices [NYSE:AMD], Cyrix [NASDAQ:CYRX], and IBM [NYSE:IBM] have come out with processors that match the speeds of Intel's Pentium MMX and Pentium II chips, but cost less than Intel's offerings.

At a news conference in Germany, press reports said that Michael Dell, Dell Computer founder and chief executive officer (CEO), commented that the company has wasted "a lot of money" in investigating using processors from companies other than Intel.

Intel has recently warned of lower demand for its products in Europe. A recent Newsbytes interview with IBM spokesperson Roger Knot seems to back up Intel's forecast (Newsbytes, May 30, 1997). Knot said that while Intel does well in the US mainly because of its marketing campaigns, its presence is much weaker overseas. IBM's strongest processor sales are in Asia and Europe, he said.

IBM, which makes and markets the new 6x86MX, sells the processor to companies like Acer, LG, and Trigen -- all of which have a much stronger presence in non- US markets, Knot said. Newsbytes notes Cyrix developed the 6x86MX, and sells it along with IBM.

AMD's K6-MMX chips are used in Fujitsu and Vobis' boxes.

Another blow to Intel came from Digital Equipment Corp., which it is meeting in court over alleged patent infringement. On Monday, DEC said it plans to add AMD's K6 to its Venturis FX-2 desktop computer line. The K6-based systems join Digital's full line of Venturis FX-2 computers that already use Intel's Pentium and Pentium with MMX processors, DEC said.

Newsbytes notes that the relationship between AMD and Digital may become even closer in upcoming months as the DEC/Intel legal battles are bound to be messy.

At the same news conference, Dell was also quoted as saying that he expected the company's World Wide Web sales efforts to help European revenues grow two to three times faster than the rest of the computer industry over the next few years.

Last week, Dell introduced a new World Wide Web site for German and British customers, with sites for France, Scandinavia, and the Benelux countries on the way.

Dell's US-Web efforts are perceived as being very successful. Earlier this year, Dell officials said their US Web storefront was pulling in an average of $1 million in sales a day (Newsbytes, Mar. 4, 1997).

At the time, Dell spokesperson Bill Robbins told Newsbytes that about 70 percent of that $1 million comes from sales of the company's various Dimension PC lines. Notebooks, the higher-end OptiPlex system, and even some network servers costing in excess of $30,000 have been sold through the site, he also said.

Robbins called the Web site a "nice extension of the direct sales model we've established."

Besides selling direct, Robbins said quite a few Dell customers look at the site to research what the company has to offer in terms of systems and pricing, then call a sales representative through Dell's toll-free number to ask additional questions and place orders.

"The site really helps improve the efficiency of our sales reps, because they don't need to configure systems over the phone as much as they used to," he said.

Dell's Web site is at http://www.dell.com .

(19970610/Reported By Newsbytes News Network: http://www.newsbytes.com)

<<Newsbytes -- 06-10-97>>

[06-10-97 at 16:07 EDT, Copyright 1997, Newsbytes News Network]