The AMD Execution Thread [2007 - 2017]

[3dilettante]

Any info on the hardware they sell there?
China's growing market would likely absorb a lot of AMD's inventory.

It doesn't strike me that the top-end stuff needs to go over there when the market is still rather new, and since AMD said it was cutting production so it could burn off inventory, I bet a lot of it is going overseas.

 

[ShaidarHaran]

Lots of Semprons and A64s, I'd imagine. A few entry-level X2s at the upper-end of the market probably. I doubt they're seeing many 6000's and 6400's over there...

 

[Silent_Buddha]

There's also the benefit that Intel and AMD have less of a history there.

So to the mainland chinese person looking for a new computer there is no difference in reputation between Intel and AMD. And you don't have as many long time computer users automatically recommending Intel over AMD.

Thus, marketing is wide open for both companies. And whichever has the best prices and the more prevalent marketing in the area will probably gain the most marketshare.

Considering AMD's commitment to winning a large share of the Chinese market, I wouldn't be surprised to hear that their marketing expenditure there was greater than in the US and Europe.

And yes, just like with the majority of computer users in the US and Europe, the average Chinese buyer doesn't need the latest and greatest. So excess AMD inventory has a very good shot of finding a home there.

Regards,
SB

 

[_xxx_]

It's not like people in China were living on Mars or something, at least they'll take a look at Anandtech or such for performance figures. The only thing I can imagine doing this is the more aggressive pricing.

 

[Kanyamagufa]

As surprising as it might seem, the average person doesn't even know what Anandtech is, which bodes well for AMD in this case.

 

[ShaidarHaran]

As surprising as it might seem, the average person doesn't even know what Anandtech is, which bodes well for AMD in this case.

Thank you. Enthusiasts always seem to lose sight of this fact and think that the average computer buyer does the same things they do. Fact is: the average computer buyer doesn't have a clue.

 

[Razor1]

As surprising as it might seem, the average person doesn't even know what Anandtech is, which bodes well for AMD in this case.

Doesn't really matter if it was Anandtech's report. We look at past sales figures of AMD chips, its pretty obvious consumers aren't buying AMD chips. In China, it has to be a price war, you don't see figures change from region to region dramatically unless there is a reason for that change like price or advertising (marketing), I don't think AMD markets more in China then they do in other countries, China although a very fast growing market is quite smaller then others.

 

[Silent_Buddha]

Except that in America and Europe, Intel has a vastly larger and more impressive history and thus reputation than AMD. Granted they have had some blunders along the way but have been impressive in execution in general. And more importantly have a reputation for stability.

All of that combines for increased sales and marketshare, especially within IT departments where AMD has only recently (with A64 and Opterons) been able to make inroads.

None of that exists in mainland China. It's an open playing field. AMD has almost exactly the same reputation, history, and chance of success as Intel at this point in China.

Something that cannot be said of North America (I guess I should use NA since Canada exists also. ) and Europe where AMD is constantly facing an uphill battle.

So past sales figures, past performance claims, past bad drivers, CPUs, etc...all don't hurt AMD.

And performance figures aren't something the mainstream computer user is really interested in anyways. After all how much faster is your web browsing going to be with a Sempron vs a Quad core CPU? Even media plays fine on the low end PCs you can get now days.

Enthusiasts tend to walk around with tunnel vision, thinking everyone wants or even needs the fastest of the fast and that price isn't the motivator for the great majority of computer users.

Regards,
SB

 

[Razor1]

None of that exists in mainland China. It's an open playing field. AMD has almost exactly the same reputation, history, and chance of success as Intel at this point in China.

If China was oblivious to what happens around the world, as you say, then the only two factors that will effect the China market are Marketing Effectiveness within the past few years and Cost of the product, and Intel has an equal oppurtunity to market just as AMD does, so only thing left is cost.

 

[lik]

Except that in America and Europe, Intel has a
None of that exists in mainland China. It's an open playing field. AMD has almost exactly the same reputation, history, and chance of success as Intel at this point in China.

I do not agree that China is the open playing field. I remember back in 2003/2004 Intel China alone had a revenue more than the total AMD revenue from the whole world. At that time none of those tier-1 OEM in China used AMD CPU. I believe that was similar to what happened in the US at that time. AMD really got a lot of OEM support in China in the past a few years.

IIRC Intel China contributes more than 25% (maybe 30%) of total Intel revenue every year. It is not like Intel has been doing nothing in China.

 

[Geo]

http://www.channelregister.co.uk/2007/09/12/q2_world_cpu_sales/

I suppose arguably that's off-topic as it's neither despair nor gloom.

 

[3dilettante]

Sounds like it might fit a VIA gloom and despair thread, as AMD's gains might be partially due to encroaching on the smaller company's turf.

It's not exactly the high-margin niche AMD's expanding into, however.

 

[Geo]

OEM business is going to be that way, and it's been clear for nearly two years that greatly increasing OEM share has been their focus. That's partly why Intel has always focused on offering the whole package (cpu, chipset, mainboard, igp) to OEMs. . .because it takes a lot of bites at that apple to make serious money off the OEMs.

 

[3dilettante]

The difference is that Intel offers the whole package and much of its manufacture in-house.
The CPU, chipset, IGP, (mainboard?), and other stuff are made by Intel's latest fabs or older fabs with paid-for older process nodes.

AMD's acquisition of ATI widens the pie it can get, but wouldn't the outsourced production mean there are more fingers in it?

I guess if the foundries can somehow best Intel at the process treadmill, AMD's betting on asset-light might win out, should Intel suddenly get saddled with underutilization costs and AMD live long enough to see the day.

 

[INKster]

The most disturbing rumor...

Is the market demand really so low that even Chartered has been winding down contracted production of AMD CPU's ?
Humm, and hints over a possible takeover...

 

[3dilettante]

I found this via the wiki on Intel:
http://contracts.corporate.findlaw.com/agreements/amd/intel.license.2001.01.01.html

Concerning the termination of the cross-licensing agreement between Intel and AMD.

6. EFFECTIVE DATE, TERM AND TERMINATION FOR CAUSE
...

(7) the other party undergoes a Change of Control. For
purposes of this Section 6.2(b)(7), "Change of Control"
shall mean a transaction or a series of related
transactions in which (i) one or more related parties
who did not previously own at least a fifty percent
(50%) interest in a party to this Agreement obtain at
least a fifty percent (50%) interest in such party, and,
in the reasonable business judgment of the other party
to this Agreement, such change in ownership will have a
material effect on the other party's business, or (ii) a
party acquires, by merger, acquisition of assets or
otherwise, all or any portion of another legal entity
such that either the assets or market value of such
party after the close of such transaction are greater
than one and one third (1 1/3) of the assets or market
value of such party prior to such transaction.

If this clause is still in effect, how much is AMD worth if it is taken over?

It would be little more than a pair of expensive high-end fabs with no product to sell and a decapitated graphics vendor with a CPU manufacturer's debt load.

edit: Or is it no new product? I don't know if the negation of this agreement would make existing products infringing, not that it would help past one CPU generation.

 

[dizietsma]

The most disturbing rumor...

Is the market demand really so low that even Chartered has been winding down contracted production of AMD CPU's ?
Humm, and hints over a possible takeover...

That guy at VRzone has done

Join Date: Feb 2004
Location: 秋葉原
Posts: 66,018

Holy Moly .. his sex life must be zero. Let me rephrase that, his life must be zero.

Imagine the time and effort to do 70 posts a day 365 days a year.

Sad boy

 

[MTd2]

The most disturbing rumor...

Is the market demand really so low that even Chartered has been winding down contracted production of AMD CPU's ?
Humm, and hints over a possible takeover...

Hey, how did you (or he) figure out there might be a take over????

 

[INKster]

Hey, how did you (or he) figure out there might be a take over????

Well, he mentioned a 3rd "A" (AMD and ATI being the first two) could be the salvation for the company, so i just assumed he was taking notice of some shadowy moves of another company with a name that also starts with an "A".
I'm thinking (excluding Venture Capital companies and international financial funds) inside of the semiconductor business, like Applied Materials, Avago or Analog Devices, but i doubt they have the $$$ or even any reasonable motive to enter the industry through the highly volatile PC CPU/GPU/chipset business.

 

[MTd2]

Well, he mentioned a 3rd "A" (AMD and ATI being the first two) could be the salvation for the company, so i just assumed he was taking notice of some shadowy moves of another company with a name that also starts with an "A".

And why would you believe a guy with so many posts (bit over 66 000 in 3 and a half years) !?? Wouldn't he be more trustful if he actualy worked. I mean, with so many posts, how can someone actualy work?!?! He can't be an insider from industry.