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AMD Buyers Suffer from Channel Shortage

The very thing I was afraid of just happened

By Ionut Ciocirlie, Hardware Editor

6th of November 2006, 09:19 GMT

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Ok, I admit I saw that coming. In the last days I watched AMD trying to produce as much as it could in order to stay ahead of its demands. And it still failed to do
that. Maybe I'm not too happy about the news, but - just like many of you - I might have believed too much in the ability of AMD to produce enough CPUs to satisfy both the 3rd party suppliers and the large system integrators. It's the "channel champion" defeated for the first time and I must say that this announcement comes at a very delicate time since the market is in a continuous change, and large chipmakers suffer from this. In the end, all this will pour down on the user's head, since he/she will be the first to suffer.

As a direct result, INTEL contacted all large integrators with the idea to supply them the needed quantity of CPUs. Of course that won't be enjoyed by AMD fans, but when you need a PC and your only choice is INTEL you will ultimately buy it, despite having "AMD" written all over you.

Many system integrators blame Dell for this, especially when you get to AM2 parts which have almost disappeared from the market. INTEL, on the other hand, indicates that AMD's transition to 65nm products resulted in this, since there are no sufficient resources for AMD to continue the development of both 65 and 90 nm parts. I wonder if AMD has some sort of internal roadmap which will translate in different levels of priority for different buyers. I sincerely hope not.
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