AMD May Align with Apple

By Colleen Taylor and Suzanne Deffree -- 9/22/2006

Advanced Micro Devices Inc. may be working with Apple Computer Inc. soon. 

According to a statement from financial firm Lehman Brothers, AMD's CEO Hector Ruiz made comments this week at a dinner in San Francisco indicating that Apple may use AMD processors in its products "at some point in the future."

While Ruiz did not suggest that there were any talks currently between the companies, the firm said that he noted Apple would ultimately buy AMD chips.

Ruiz also reportedly served up pointed criticism of the business practices of AMD's rival Intel, which AMD believes has stifled the growth of the PC industry.

A tie between AMD and Apple would further mark the company’s progress into territory traditionally ruled by other chipmakers. Earlier this year, AMD broke into Dell’s server market, a space previously reserved for Intel. Following that, AMD dug in deeper with Dell, when the PC kingpin announced plans for use of AMD chips in its desktops, a new opportunity for the company. Ironically, use of Intel’s chips in Apple computers has only just begun. The two companies completed the transition to Intel processors for the entire Mac family in August. Previously, Macs used IBM chips.

The anticipated move by AMD could also greatly augment its unit share traction, Lehman Brothers reported.

Neither Apple nor AMD could be reached for official comment on the matter.

This has been a news-making week for AMD. The company unveiled its Torrenza Innovation Socket Initiative, which will allow OEMs to consolidate server offerings for multiple processors to potentially a single platform, and allow third-party silicon makers to create their own socket-compatible chips for AMD's x86 base. The debut, also viewed as an attack on Intel’s market share, was met with applause from Wall Street watchers, as well as OEMs.

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