One could argue that intel had a hand in AMDs decline although looking at how things have progressed I doubt they would be in a much better position if things had progressed in a more "natural" way.
Intel doesnt have to force amd out of the large segments of the market. AMD has managed to do that to itself with poor performance at the mid range and high end, and pretty much forced itself out of the most profitable market (servers) with poor performance per watt, even though their flagship chip was supposed to be great for servers.
Look at the root of the issue. If they had a well-priced, decent-performing more powerful option for a standard 15'' laptop, partners would not be looking to stuff a Brazos in there to begin with.
AMD now selling assets to lease back. Trading increased operating costs to raise cash.
http://www.reuters.com/article/2012...feedType=RSS&feedName=financialsSector&rpc=43
Exactly, they don't. And until they have an escape route they must make money to pay the bills. And while selling Brazos is damaging to the brand, not selling Brazos is far more damaging. Selling Brazos damages the brand, not selling Brazos puts in danger the very survival of the company
They have their over-priced mobile APUs.
What do you mean by over-priced? They are at 38% gross margins for GPU + CPU, probably 35% for CPU only, they can't go any lower. Quite the opposite, they need higher prices.
AMD now selling assets to lease back. Trading increased operating costs to raise cash.
http://www.reuters.com/article/2012...feedType=RSS&feedName=financialsSector&rpc=43
Truth.I know it's really counter-intuitive but if there is someone pushing prices down in the CPU market it is Intel, not AMD. But what bothers me more is how the fanboys come here and drop things like "I'm gonna pay 900USD for a Celeron" with such a straight face.
Let's give a better look at the assumptions here:
1) "AMD cares for the consumer, it keeps Intel honest and they are the driving force behind low prices!!! Save AMD please!"
No. AMD is having operating losses and their margins are in the toilet. and their strategy is entirely dependent on high ASPS, as only with with higher ASPs 246mm^2 APUs and 315mm^2 mainstream chips become viable. AMD isn't really dictating price as their product isn't the benchmark for anything, so they must follow Intel pricing. In the same marketing environment in which Intel makes 60%+ gross margins, AMD slumped to 38%, and this with dGPU included. Numbers can be a lot worse if not for dGPU, around 35%. So if there is a company hoping for a window to increase its prices it is AMD, not Intel.
2) "But still, they are relevant for the bottom market!"
No. The bottom market is all about price/performance (a price leverage) from the consumer side, and price/area (cost leverage) from the manufacturer side. There is no differentiation here. AMD is already trailing Intel on both disciplines. To make things worse, AMD has only 16% share in the x86 market and about a third of that is Brazos, almost a category on itself, so even if AMD had price or cost leverage they would not have the capacity to meaningfully impact prices. To make an analogy, not only AMD stick is very weak, it isn't big enough to the task at hand.
3) "But but... once AMD is gone Intel will gouge on prices"
Not really. Intel will aim not maximum margins but maximum returns, which will need a certain volumes for their fabs and the right quantity of demand out there, and to get to those points the price may be higher, but also lower than they are now. As we saw in 2), AMD is already irrelevant for price formation, I don't think that the maximum return price is too far above or below current levels.
If AMD can manage to whether the bad economy till it picks up again, they have a slim chance at building their business back up again, maybe even x86.
Pretty sure he means over-priced with respect to performance and the competition's price/performance.
From a business operation perspective, yes the price is already too low. Don't bring an expensive knife to a gun battle.
Seems everything is for sale at AMD.
Oh really? What else are they selling off?
Is Al-Sahhaf your relative or something like that?
AtenRa
Location : Athens Greece
It seams that you have no knowledge of geography and History at all. My 2500+ year old family tree doesn't have any relatives from Persia/Babylon etc
Btw, Al-Sahhaf is Arab, not Persian, Babylonic, etc.
Persian and Babylonian empires occupied the area of what is today's Iraq, Iran, Saudi Arabia etc. It was meant to highlight that area 2500 years ago
http://www.reuters.com/article/2012/11/27/us-amd-blackfriday-idUSBRE8AQ12I20121127
AMD is trying to sell its Austin campus and with a lease back option to free some cash.
I swear, the stock ticker for AMD should be labeled DUH.
Now that AMD has failed in tackling Intel on the x86 CPU front, they feel they need to take on the SSD world against the likes of OCZ, Crucial, Sandisk to name a few.
Seems legit and well thought out.
I guess at this point though, they'll try to throw crap on a wall and see what sticks best.