Every day that Intel has more problems in the processor market and more people are burned. A few days ago Dell indicated in a call to investors that they lowered their revenue forecast because of Intel. The company has grown tired of waiting and believing all the empty words of its preferred partner. They have already started discussions with AMD to correct the problem.
Intel currently does not have the capacity to meet the demand for processors and will not have it until mid-2020. The company has decided to outsource a large part of its less 'important' processors. Something that would be affecting all OEM equipment manufacturers, especially Dell, the largest OEM systems manufacturer on the market.
- Inspiron 3565 a9-9425 4gb / 500gb / 15,6 fhd / amd r5 / w10
Dell initiates talks with AMD
Although it is the logical option to knock on AMD's door, we do not know to what extent the company will be able to fill the gap. We must bear in mind that TSMC would already begin to have problems meeting the demand for processors. We assume that the talks will come to fruition, as it will be a positive thing for both companies.
Tom Sweet, Dell's CFO during an interview with the Yahoo Finance portal, said that they are "evaluating AMD" as a partner. He also stressed that they do not expect a solution from Intel until the second quarter of 2020. The only option left to the OEM systems manufacturer is to speak with direct competition from Intel.
We also do not know what volume Dell requested from AMD. They may demand an amount to cover the Intel shortage. It seems unlikely that they would make a complete shift from Intel to their competitor, because it couldn't be covered. A move that seems obvious to be replicated by other large OEM equipment builders. We are waiting for more information.
Source: TPU
