Feeds

Gateway to use AMD because of Intel chip famine

Issues profit warning for Q4, blames Intel drought

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Gateway has come clean on its plans to use AMD microprocessors in its PCs, after issuing a profits warning yesterday blaming shortages of Intel components. The company said that it expects to post earnings for its fourth financial quarter that are less than expected, because of difficulties getting hold of enough Intel processors to satisfy demand. Those parts include 400MHz and 433MHz Celerons, as well as Coppermine .18 micron processors, some of which, as we reported the day after they were launched, were almost impossible to obtain. There was also a shortage of the popular BX chipset in autumn last year. In a conference call to financial analysts, Gateway said that uncertainty over the Y2K bug would also dent its profits for the quarter. Gateway executives said that the firm will introduce PCs using AMD chips within the next week or so. AMD in the US confirmed that it had been talking to the company about supplying it with microprocessors. The decision for Gateway to second source AMD microprocessors will be a blow for Intel, which persuaded the company last year to stick with its chips and included a financial incentive to help it do so. However, as we reported late last year, Intel, for a reason so far unexplained, unilaterally decided to end this arrangement with Gateway. Gateway is unlikely to be the only company to have been affected by the Intel chip drought, and we can expect to see other PC vendors reporting similar effects in the usually lucrative selling period between September and Christmas. While Intel announced a large number of Coppermine parts on October 25th, but even two months later, on Christmas Day, supplies of its top end 733MHz Pentium III were still severely constrained. ® See also Compaq favours AMD K6-II for new notebook range Gateway stealth launches Athlon PCs Intel loses big industry face to AMD over Coppermines Intel trashes Gateway rebate scheme No Athlon from Gateway -- officially. Yes there is, unofficially AMD wins must shiver Intel's timbers Compaq, Fujitsu-Siemens switch to AMD Athlons for Yule machines Big PC vendors furious over Intel Coppermine yields Huge shortages, technical problems hit Intel Coppermine debut

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.