Toshiba, AMD ink laptop deal

May 29, 2007 – Former Intel-only PC supplier Toshiba Corp. says it will switch to processors from AMD for some of its laptops sold in the US and Europe, according to media reports.

Toshiba plans to include the AMD chips in “moderate-priced standard models” of laptops for both consumers and businesses, putting the chips in about 20% of the notebooks it sells in the US and Europe, which adds up to roughly 60% of Toshiba’s overall PC sales noted Reuters. The Japanese company will continue to use Intel chips in higher-end offerings, noted the Nikkei daily paper.

The No.4 global supplier of laptop PCs hopes the move will help efforts to reduce parts procurement costs by at least 10%, noted the Nikkei. Microprocessors account for about 25% of a PC’s total production cost, and AMD’s chips are expected to sell for up to ~$80 less than Intel chips, noted both Reuters and the Nikkei paper.

The move follows a similar announcement last year from No.2 PC maker Dell, formerly also a major Intel shop.


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