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The battle moves to local assemblers

The battle moves to local assemblers

The local OEM market is set to become the next battleground for AMD to take on Intel for a share of the PC pie. This follows its recent success with multinational PC vendors, especially in the retail segment.

Sydney-based distributor APD International, together with its interstate affiliates, has been distributing AMD boxed and tray CPUs for over a year. Managing director Ngat Doan said that he has been targeting system builders who place orders for single units through to 50 or more at a time, and is looking to build on AMD's growing reputation.

But as well as APD, the chip vendor is now looking to use the leverage and muscle of electronics component distributor Avnet Pacific.

Avnet, a worldwide distributor, notably of semiconductor products, has established a regional operation under the banner of Avnet PC components. Strategic business development manager Michael O'Boyle heads up Australian and New Zealand sales. O'Boyle, whose experience includes a period at Texas Instruments when it was eyeing the worldwide CPU market, is focused on getting AMD processors into the hands and production lines of Australian assemblers.

According to O'Boyle, Avnet will use its low-cost distribution model and exposure it has gained in the IT channel via the DRAM market to build its sales base. While Avnet has not previously been recognised as an active participant in the IT channel, its foray into the local assembly market has significant targets.

"We are looking to capture 15 per cent of the local desktop PC assembly market by the end of the year," said O'Boyle. He estimated this to be around 5000 AMD processors per month.

O'Boyle claimed that with local PC assemblers under cost and margin pressure and looking for a competitive edge, AMD offers a viable cost-effective alternative to Intel. He added that Avnet's approach will be to overcome the concerns of some OEM customers that they may be penalised for using non-Intel CPUs.

"Intel is not the only shop in town," he said.

Reseller seminars and demonstrations are scheduled for Melbourne and Sydney on March 17 and 19.


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