OUCH!! Gateway drops AMD as a chip supplier

[Keefe]

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.---

sad sad sad. amd are cheaper and just as powerful as intels best. their decision is good marketing - huh ?

did you guys know that gateway have pulled out of my country (australia) and asia leaving a trail of unhappy ppl who purchased fire sale items over the net only to receive inferior products and by this time too late to complain as gateway had already pulled out. not good.

[Keefe]

Wow, what is the main supplier for consumer computers now in au since Gateway pulled out?

Gateway used to be pretty good.  They've been making some poor decisions lately.  This is an example of one of them.  Actually, I heard that they dropped AMD once before only to come back to them.

Art

[Keefe]

They are just going to loose more money by not using the amd processor line.

 That is too bad as AMD processors are easier to overclock and basically faster than Intel with the same rating.  Good thing I don`t deal with Gateway.

 I guess this means that in the future, people who bring me their Gateway's for upgrade are going to be either paying a lot more money, or I'll be replacing some motherboards.  ;D