AMD tanks? But sales are great!

[HotFoot]

Article:

"AMD Sees Steady Growth in All Computing Segments"
http://www.dailytech.com/article.aspx?newsid=5358

There seems to have been a lot of talk in the forums about AMD tanking lately, now that their architecture is the older one on the market. It seems their sales haven't been hit at all, though. I don't think any talk of AMD having difficulty riding out the current "crisis" has merit given the sales record over the last two years.

Now that they're beginning to transition to 65nm, they can finally start to come closer to meeting the demand for their product, so they will probably manage to get sales increases again over the next year. I would hold on to stock if I owned any.

I think the market numbers show that brand recognition counts for a lot. Even though I would certainly choose the C2D over the X2 if I were spending more than $200 on a processor, in the non-computer-geek world AMD is finally as recognised as Intel.

 

[CaptRobertApril]

Note that sales reports are usually a quarter behind, and AMD has some very healthy long term contracts. I doubt that the most ardent AMD-hater would argue that the company is going to close up shop entirely. But especially looking at the Brisbane benchmarks, they're throwing away any dominance they might have had in the enthusiast PC market.

 

[dlmacline]

Well I dont know much about stocks and market share.. but maybe it is because of their deal with dell and other OEMs.. AMD mid-end is not that bad.. and Dell is a big PC seller especially to companies.. so even though enthusiasts tank AMD for being beaten by C2D.. company bosses seal contract deals through pc sellers like Dell on getting AMD systems for workforce thus increasing sales..just my opinion though

 

[1Tanker]

Article:

"AMD Sees Steady Growth in All Computing Segments"
http://www.dailytech.com/article.aspx?newsid=5358

There seems to have been a lot of talk in the forums about AMD tanking lately, now that their architecture is the older one on the market. It seems their sales haven't been hit at all, though. I don't think any talk of AMD having difficulty riding out the current "crisis" has merit given the sales record over the last two years.

Now that they're beginning to transition to 65nm, they can finally start to come closer to meeting the demand for their product, so they will probably manage to get sales increases again over the next year. I would hold on to stock if I owned any.

I think the market numbers show that brand recognition counts for a lot. Even though I would certainly choose the C2D over the X2 if I were spending more than $200 on a processor, in the non-computer-geek world AMD is finally as recognised as Intel.

I think if we look at it around 2H 07/3Q 07, the numbers will reflect C2D's erosion into K8's sales. It may not be huge, but IMO, i think it will be there plainly to see. Until K8L comes out, C2D will steal back some of the DT marketshare.

 

[qcmadness]

I think if we look at it around 2H 07/3Q 07, the numbers will reflect C2D's erosion into K8's sales. It may not be huge, but IMO, i think it will be there plainly to see. Until K8L comes out, C2D will steal back some of the DT marketshare.

Agreed

 

[weskurtz81]

Tanker,

I would agree with you, and think you are probably correct, if not for one thing. AMD is producing at capacity still, even to this month demand seems to remain very high.

I think what we will see, is an decline in one market, and an increase in another. AMD might be selling more cpu's today than they were in March, but in a different area of the market.

I think AMD will have picked up alot of the lower performance area of the market, and lost some of the enthusiast area, and maybe, in the server area.

AMD seems to be pumping out all the cpu's they can just to keep everyone satisfied.

wes

 

[1Tanker]

Tanker,

I would agree with you, and think you are probably correct, if not for one thing. AMD is producing at capacity still, even to this month demand seems to remain very high.

I think what we will see, is an decline in one market, and an increase in another. AMD might be selling more cpu's today than they were in March, but in a different area of the market.

I think AMD will have picked up alot of the lower performance area of the market, and lost some of the enthusiast area, and maybe, in the server area.

AMD seems to be pumping out all the cpu's they can just to keep everyone satisfied.

wes

I think this could change in Q1 07 when the E4x00 Allendales roll off the line(that's why i said revisit this issue in 2H 07/Q3 07). If they are half as good as expected, that should wrap up the low end for Intel as well... or force AMD to drop their low-end parts more....pushing back the new profits from 65nm. :?

 

[weskurtz81]

I agree about performance, but the predicted price is in the mid $160's, and as we have seen in past, lowest priced parts tend to do rather well. And since AMD already has $150 dual core cpu's they will be able to lower the price of the 65nm to compete at the low end of the spectrum and have the best price.

wes

 

[powerbaselx]

I think this could change in Q1 07 when the E4x00 Allendales roll off the line(that's why i said revisit this issue in 2H 07/Q3 07). If they are half as good as expected, that should wrap up the low end for Intel as well... or force AMD to drop their low-end parts more....pushing back the new profits from 65nm. :?

Yes, maybe for that specific market segment. Anyway since AMD have other key market players backing up like IBM and Dell, probably they'll change for other strategy. Long-term business contracts and good partnerships are the key for AMD survival.

I don't know if AMD/ATI fusion was a good move. ATI brand is disappearing being replaced by "AMD" term - will this create a new market awareness of AMD?
Another thing about the fusion is that, if it shows a good move, Intel could buy NVidia which is not desirable IMO...

Just my 2 cents...

 

[bydesign]

I would tend to disagree with "company bosses" are going AMD most business class machines only offer AMD at the lowest level item if they offer it all. This lift is coming from the consumer sector at least from the US.

 

[weskurtz81]

Well, the ATI brand isn't disappearing, all discrete graphics and non AMD chipsets, the RD6xx Intel chipset that will be out, will still be ATI branded.

wes

 

[dasickninja]

The RD600 is a disappointment with its 1600MHz OC cap. It's like dealing with 975X, except more expensive. Its a great board, but it didn't live up to our expectations.

 

[Doughbuy]

ATI will still provide discrete, but I don't know how much it will stay in competition with nVidia anymore. I see AMD using ATI like how Intel uses their graphics department, just to sell mobo's and integrated chipsets... we might see a couple high-end discrete cards here and there, but I don't know how long that will last...

Everything else... like I say time and time again, AMD is counting on its server sales to pull through, yes, even though consumer space is using AMD cpu's like Dell and such, I'm fairly certain that Dell got such a great deal from AMD that they're barely making ends meet with that... not to mention Dell will also probably get a better deal from Intel to counteract that, and AMD really can't last in a price war...

Meh.

 

[CaptRobertApril]

AMD really can't last in a price war...

Intel drops the pricing on their entire C2D/Q line by 50%. Six months. Tabula Rasa.

 

[TechnologyCoordinator]

Yeah, AMD is doing excellent in spite of the fact that Intel has better products. AMD has lowered their prices, made friends with Dell, and invested hugely to position themselves in a better place in the future. Of course a company is going to do poorly in terms of profits when prices are slashed.

Intel is floody the market with shitty chips and it's hurting AMD. All that pre-Conroe stock of chips that they're just selling to sell will run out, I hope...

 

[BaronMatrix]

Article:

"AMD Sees Steady Growth in All Computing Segments"
http://www.dailytech.com/article.aspx?newsid=5358

There seems to have been a lot of talk in the forums about AMD tanking lately, now that their architecture is the older one on the market. It seems their sales haven't been hit at all, though. I don't think any talk of AMD having difficulty riding out the current "crisis" has merit given the sales record over the last two years.

Now that they're beginning to transition to 65nm, they can finally start to come closer to meeting the demand for their product, so they will probably manage to get sales increases again over the next year. I would hold on to stock if I owned any.

I think the market numbers show that brand recognition counts for a lot. Even though I would certainly choose the C2D over the X2 if I were spending more than $200 on a processor, in the non-computer-geek world AMD is finally as recognised as Intel.

I think if we look at it around 2H 07/3Q 07, the numbers will reflect C2D's erosion into K8's sales. It may not be huge, but IMO, i think it will be there plainly to see. Until K8L comes out, C2D will steal back some of the DT marketshare.



What you seem to be forgetting is that even now several Intel fabs are STILL churning out NetBurst. There could only be small gains since AMD is now almost 30% of Dell's shipments. As the China deals start to genrate revenue, that will gain AMD more share.

 

[CaptRobertApril]

All that pre-Conroe stock of chips that they're just selling to sell will run out, I hope...

I dunno. I think anyone who is actually stupid enough to buy a pre-Conroe in today's market deserves exactly what he's gonna get! :twisted:

 

[darkstar782]

AMD are tanking in "our" market, that is the market of the enthusiast that spends a lot of time keeping up to date with the latest developments and relative performances of µArchs.

AMD still have plenty of momentum in the markets of computer users that, while relatively competent, do not keep up to date. I have a friend that spends a fortune on his PC for the sole purpose of Flight Sim X - he is so used to the AMD -> Intel situation of the past few years that he will not even look at Intel when he goes to buy a PC, he will just buy the latest AMD cpu.

Its sad I know, but there are plenty of people out there that have not even heard of Core 2, and even if they had would simply think "bah its Intel it must be crap". This market has a lot of inertia and it will take a while for a large swing to happen. We are at the forefront of it, the type of people that read tech websites and post on forums like this are the "early adopter" section of the market that has relatively little "inertia" and will swing to a new product if it is superior.

This is why it will take a long time for Intel to truly claw back from AMD what it lost in the Netburst vs. K8 days.

 

[Major_Spittle]

Yeah, AMD is doing excellent in spite of the fact that Intel has better products. AMD has lowered their prices, made friends with Dell, and invested hugely to position themselves in a better place in the future. Of course a company is going to do poorly in terms of profits when prices are slashed.

Intel is floody the market with shitty chips and it's hurting AMD. All that pre-Conroe stock of chips that they're just selling to sell will run out, I hope...

You are spot on about AMD's situation. They have a better product than the Netburst processors on the market. Soon those will be gone and if AMD is behind what Intel starts marketing as their "Value Chip" it will spell doom for AMD. This is the core of my speculation on AMD's future. To what degree it hurts them I don't know because everything is speculation. Hell, it is still possible that AMD will retake the lead in CPU performance this summer, but I just checked my ass and didn't see any monkeys getting ready to fly out.

 

[1Tanker]

Hell, it is still possible that AMD will retake the lead in CPU performance this summer, but I just checked my ass and didn't see any monkeys getting ready to fly out.

HeHeHe....good one.

 

[weskurtz81]

Ninja,

Is that because Intel doesn't want it to sell as well? Thinking about it, it would make sense.

Doughboy,

Why would they just have ATI stop doing what makes money? If you were making alot of money, would you try to stop? And, since ATI already has a chipset team, why would they take the discrete graphics and put them on an already successful chipset department. Non of that makes any sense, AMD bought an out of the box chipset maker that they didn't have to change much. They are not going to stop selling discrete graphics, ATI is very good at it and in many cases better than Nvidia.

wes

 

[dasickninja]

I don't really know. Its a mystery to me what these big companies do.

 

[darkstar782]

Tbh apart from the "Halo effect" of having the fastest card, I don't think the profit margins on the top end products are that great. Massive development costs, large expensive dies, small niche market.

The advantage is that having the "fastest card in the world" helps you to sell more low and mid range cards, even when these are not better than your competitors.

 

[SEALBoy]

90% of the people out there dont really care what CPU their computer has. They just run out and buy $500 HP's, Dell's, and Compaq's. The difference in performance isn't noticeable until you start doing CPU-intensive stuff, like high-end gaming. No one else really cares what's inside their computer as long as everything runs. That is why, although AMD may have lost market with 1337ists like us, they're still selling strong in the main comsumer market because their cheapest CPU's are cheaper than Intel.

 

[m25]

90% of the people out there dont really care what CPU their computer has. They just run out and buy $500 HP's, Dell's, and Compaq's. The difference in performance isn't noticeable until you start doing CPU-intensive stuff, like high-end gaming. No one else really cares what's inside their computer as long as everything runs. That is why, although AMD may have lost market with 1337ists like us, they're still selling strong in the main comsumer market because their cheapest CPU's are cheaper than Intel.

Not exactly; A lot of small vendors, especially outside the US are still short in C2D and since the K8 is a better option then the Netburst P4s or PDs they have switched in mass to AMD CPUs.
Furthermore, the market is in steady expansion with the thechnology-hungry China leading other smaller eastern countries there is always more space where to sell.