IBM Dropping AMD Platform From Some PCs

IBM Corp. said it has stopped selling desktop PCs in the United States with Advanced Micro Devices Inc.’s microprocessors and also might drop AMD processors from its computers sold in Asia.

IBM’s U.S. desktops will carry only Intel Corp. processors, said Ray Gorman, spokesman for IBM’s PC unit.

By dropping one chip platform, IBM hopes to cut some of its manufacturing expenses, Gorman said.

“With the low margins on PCs, it doesn’t make sense for us to invest in two sets of chip platforms,” Gorman said.

AMD spokesman Drew Prairie said the IBM move was not surprising because IBM is focusing on selling PCs to businesses, while AMD chips have done better in the consumer retail market.

AMD fell $1.11 to $15.50 and IBM rose 34 cents to $106.20, both on the NYSE.