AMD cuts ties with Evesham

Arm's length relationship for rescued PC maker

Andrew Charlesworth, vnunet.com 20 Aug 2007

AMD has ended its close relationship with the Evesham brand, which was recently rescued from administration.

Before Evesham hit the rocks, entering administration on 3 August this year, the majority of its PCs were AMD-based.

System-builders of significant size are regularly courted by chip companies like AMD and Intel.

They are briefed on processor technology 'road-maps', given early sight of new microprocessor designs and offered extensive technical support so that they can develop PCs to exploit new chip capabilities.

By maintaining a close direct relationship with the processor companies, system builders receive bulk discounts and participate in 'co-operative marketing programmes' such as the Intel Inside campaign.

These essentially offer money to spend on advertising which jointly promotes the brands of the PC builder and the chip-maker, all to ensure that the system builders stay faithful.

The new Evesham, bought out of administration on 6 August for $22m by Dubai-based PCC Technology, which is run by ex-Time/Tiny owner Tahir Moshan, will no longer enjoy these benefits, and will have to source processors from AMD distributors.

The two companies refused to comment directly, but did issue prepared statements on the matter.

AMD said: "AMD can confirm that it is no longer working with Evesham but will not disclose information regarding individual business engagements with its partners. AMD remains committed to supporting the UK channel."

Evesham said: "All AMD are saying is they are not going to be working with us direct - we will still buy AMD processors through distribution. It is not going to cause any supply issues to our customers."

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