Dell cuts online sales of AMD-based PCs

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NEW YORK (CNNMoney.com) -- Dell Inc. said Friday that it will limit online sales of computers using Advanced Micro Devices Inc. chips.

The company will continue to sell its Inspiron AMD-based systems through its retail partners and over the phone. But only one consumer desktop, the Energy Star 4.0 Inspiron 531, will be available on the company's popular Web site.

David Frink, a Dell spokesman, said the decision was part of regular adjustments that the company makes concerning what products it offers and how they are made available.

"We are committed to AMD as a long-term partner," Frink said.

An outside spokeswoman for AMD said the two companies "continue to enjoy a strong partnership."

David Wu, an analyst who follows AMD for Global Crown Capital, said Dell's decision is "irrelevant" for the chipmaker.

"Dell changes these things all the time," he said. He added that the change in distribution "will have no impact on AMD at all."

Shaw Wu, an analyst who covers Dell for American Technology Research, said the decision was not surprising because Dell and AMD are somewhat mismatched.

"We had expressed reservations that Dell's demographics didn't really fit AMD," he said.

Wu points out that AMD's strength is traditionally in the consumer market and internationally, while Dell is stronger in sales to corporations in the domestic market.

Shares of AMD (AMD, Fortune 500) fell more than 3% Friday. Dell (DELL, Fortune 500) shares finished flat.