Dell considered switching to AMD, but its executives feared the "double whammy" of seeing a huge chunk of its rebates not only vanish, but shifted to a competing computer maker. By mid-2004, Intel was paying Dell about $300 million per quarter in rebates -- or more than one-third of its quarterly net income.
But Dell continued to lose share, revenue, and reputation by not shipping the Opteron. On November 4, 2005, then CEO Otellini reported back to colleagues on a call he had received from Michael Dell, Dell's then chairman: "[Michael Dell] opened by saying 'I am tired of losing business'... 'Dell is no longer seen as a thought leader.'" Later that month, Michael Dell emailed his own people writing, "We are losing the hearts, minds and wallets of our best customers."
But Otellini countered Michael Dell's complaints by, according to Otellini's email, reminding him, "We are transferring over $1 billion per year to Dell for [MCP] efforts. This was judged by your team to be more than sufficient to compensate for the competitive issues." When advised in February 2006 that Dell's then CEO Rollins had decided to stay with Intel chips, Otellini emailed a colleague calling Rollins "The best friend money can buy."