Keefe
09-25-2001, 03:30 PM
Gateway Ends AMD Chip Orders, Consolidates Purchases With Intel
By a WALL STREET JOURNAL Staff Reporter
SAN DIEGO -- Personal-computer maker Gateway Inc. is consolidating its microprocessor purchases with Intel Corp., dropping Advanced Micro Devices Inc. as a chip supplier.
A Gateway spokeswoman confirmed the move, saying the home PC maker is reducing expenses by grouping more of its component purchases with fewer suppliers. It has been hard hit in the PC downturn, slashing its employment and retrenching from international markets amid a sharp downturn in consumer PC sales that began late last year.
Gateway rolled out three new lines of home and small-business PCs Monday that solely employ Intel microprocessors. While AMD had supplied chips for a low-cost consumer line, "We've been able to meet our lower cost objectives with Intel," the Gateway spokeswoman said.
The company is the latest defection from AMD's customer ranks. Last month, Micron PC LLC said it would use Intel chips exclusively in its business and government PC sales. IBM also dropped AMD as a chip supplier when it exited from the U.S. retail market. An AMD spokesman said he was unfamiliar with Gateway's decision.---
By a WALL STREET JOURNAL Staff Reporter
SAN DIEGO -- Personal-computer maker Gateway Inc. is consolidating its microprocessor purchases with Intel Corp., dropping Advanced Micro Devices Inc. as a chip supplier.
A Gateway spokeswoman confirmed the move, saying the home PC maker is reducing expenses by grouping more of its component purchases with fewer suppliers. It has been hard hit in the PC downturn, slashing its employment and retrenching from international markets amid a sharp downturn in consumer PC sales that began late last year.
Gateway rolled out three new lines of home and small-business PCs Monday that solely employ Intel microprocessors. While AMD had supplied chips for a low-cost consumer line, "We've been able to meet our lower cost objectives with Intel," the Gateway spokeswoman said.
The company is the latest defection from AMD's customer ranks. Last month, Micron PC LLC said it would use Intel chips exclusively in its business and government PC sales. IBM also dropped AMD as a chip supplier when it exited from the U.S. retail market. An AMD spokesman said he was unfamiliar with Gateway's decision.---