AMD bags Compaq, IBM for desktop chips

AMD continued its merry start to the new year today, saying it had picked up deals to supply chips to IBM and Compaq.

Earlier today, ZDNN revealed that AMD would supply processors for Compaq notebooks. Now, the firm says it has also tied up lucrative deals to feed into spring releases of Compaq's Presario and IBM's Aptiva PC lines.

The IBM arrangement is a renewal of an existing Aptiva deal but the Compaq is the big breakthrough, giving AMD access to the world's biggest supplier of desktop systems. Compaq has not shied away from voicing its discontent with Intel in the past but AMD's spotty delivery record has not helped its cause.

"You'll find K6 Presarios and Aptivas throughout Europe," said Rana Mainee, European market planning manager for AMD Europe.

Mainee hinted that AMD could have further nasty surprises for rival Intel when both cut prices at the end of January.

"$268 is still not the sweet spot for an entry-level PC," he said, in reference to Intel's latest price for the 233MHz Pentium II. "That's sub-$150."

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