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Idea for AMD to be profitable again

Last response: in CPUs
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April 20, 2007 12:46:36 AM

This is how AMD can be in the black again.
Step 1)
Scrap the CPU R&D department and sell all the fabs. Heck, AMD won't need any engineers at all with my plan. This will greatly reduce their cost. They'll be operating in the back in no time.

Step 2)
Talk to Intel and buy back Intel's low binning parts. Rebrand as AMD processors. This was pretty much what they did in the 386/486 days. I'm sure Intel will be willing to sell them to AMD because they'll end up in the trash anyway and it would be in Intel's best to have a competitor on the market to avoid anti-trust issues. Think of AMD as "Intel Outlet" or "Ross' for CPUs." The consumer wins because we get cheap CPUs. Most of us here buy the cheapest stuff anyway.

Step 3)
Design a computer around the stream processor. Most computers nowadays are fast enough for all tasks except for things like media encoding which is where AMD right now has a 3-4 year lead on Intel. Sell the R600 coupled with a CPU. Make it a package like Microsoft did with Office. Make the GPU the centerpiece of the system. I guarantee consumers will flock to it because a stream computer will be much faster than a Core2 Duo.

In 5 years time, the stream processor will take off and CPUs will be a secondary chip of the computer. GPUs will be the centerpiece. AMD will make lots of money and in the process out wit Intel.

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April 20, 2007 12:58:50 AM

Yeah, fire all the engineers, sell the fabs and the empty R&D buildings, sell all intellectual property. Yeah, AMD will be in the black... For a few months anyway.

How is AMD going to design a computer around a stream processor if the R&D department, along with all its engineers, are gone?
April 20, 2007 1:06:44 AM

Maybe they could be profitable by having the best chip again.

Just a thought......
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April 20, 2007 1:31:51 AM

Quote:
Or maybe they could get into a simpler form of electrical manufacturing like say light switches.


They'd have to be really small and have lots of advanced settings though, otherwise they wouldn't be advanced micro devices.
April 20, 2007 1:36:58 AM

I'm not sure about AMD being profitable, but I know how I will be. I'm going to set up a lottery ticket stand in front of the boardroom at the Q2 earnings conference.
April 20, 2007 1:42:10 AM

Hmm... A new form of PC lighting, tini, on-die, surface mounted LEDs! Color changing too, with a bundled program so you can make them flash in patterns and crap. You would have to have a clear IHS though, and water clear thermal paste that doesnt disfuse the image, and the die would have to be exposed. Or maybe a little window, like EPROM chips have, so you can still see the die without having to leave it out in the open.
April 20, 2007 1:46:37 AM

What do you mean? Intel is the one in trouble. So sayeth Sharikoubooboo. AMD is doing just fine. Maybe get rid of all engineers and hire Sharikoubooboo. He can do the PR as a side job.
April 20, 2007 1:52:26 AM

Don't you mean fire the marketing and PR and hire Shakirou? :wink:
April 20, 2007 2:29:20 AM

Quote:
This is how AMD can be in the black again.
Step 1)
Scrap the CPU R&D department and sell all the fabs. Heck, AMD won't need any engineers at all with my plan. This will greatly reduce their cost. They'll be operating in the back in no time.

Step 2)
Talk to Intel and buy back Intel's low binning parts. Rebrand as AMD processors. This was pretty much what they did in the 386/486 days. I'm sure Intel will be willing to sell them to AMD because they'll end up in the trash anyway and it would be in Intel's best to have a competitor on the market to avoid anti-trust issues. Think of AMD as "Intel Outlet" or "Ross' for CPUs." The consumer wins because we get cheap CPUs. Most of us here buy the cheapest stuff anyway.

Step 3)
Design a computer around the stream processor. Most computers nowadays are fast enough for all tasks except for things like media encoding which is where AMD right now has a 3-4 year lead on Intel. Sell the R600 coupled with a CPU. Make it a package like Microsoft did with Office. Make the GPU the centerpiece of the system. I guarantee consumers will flock to it because a stream computer will be much faster than a Core2 Duo.

In 5 years time, the stream processor will take off and CPUs will be a secondary chip of the computer. GPUs will be the centerpiece. AMD will make lots of money and in the process out wit Intel.


How does one accomplish Step 3 after completing Step 1?
April 20, 2007 2:37:40 AM

Here's a better idea, straight from Shakiranoob...

My RECOMMENDATION to AMD on strategy

To quicken the collapse of Intel, AMD should PERMANENTLY lower the price of desktop CPUs.

Except the FX line, all AMD desktop CPUs should be sold at price between a narrow Window of $50 to $150. Since AMD's APM process is so good, the chips they produce are nearly identical, this allows AMD to mark their CPUs at higher rating.

The pricing table should look like the following
1) Athlon 64: $50 to $60
2) Athlon 64 X2 4000+: $65 but with 10% volume-- this makes sure all Pentium Ds will be sold at lower than $60.
3) Athlon 64 X2 5600+ and up : $85 to $95
4) K10 dual core : $120 to $150

With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.

--------------------------------------------------------------------------------------

With a foolproof plan like that, how can AMD go wrong?! LOL :lol:  :lol:  :lol: 
April 20, 2007 2:41:56 AM

Quote:
How does one accomplish Step 3 after completing Step 1?


Hahaha, reminds me of an old SouthPark episode. Some garden gnomes come to life and they have a plan for getting rich. They start stealing undies from wardrobes, and soon they have a huge stash.

It went something like this:

1) Step one: Collect underwear
2) Step three: Make Profit

(So... what's step two?)
April 20, 2007 10:40:03 PM

My suggestion would be that amd should burn all their production center and claim insurance money and never rebuilt.

/flame :-P
April 20, 2007 10:57:23 PM

or they could take notes from good ole Ken Lay...
April 21, 2007 12:28:01 AM

Quote:
With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.


You really thought that through didn't you? Yes will follow suit if AMD lowers the prices on their CPUs; but Intel has deeper pockets than AMD and would probably weather the storm as AMD prices itself out of business. That's not even taking into account that Intel has other sources of revenue other thatn CPUs while AMD is still in the hole from their acquisition of ATI. Also, your plan would probably be considered dumping and the SEC would help AMD bankrupt itself.
a b à CPUs
April 21, 2007 1:13:35 AM

1.) Bad move IMHO, canning r&d now makes great bedtime reading, but within 18 months or so u will be FARKED.

2.) Sound idea. Exept right now Intel (imho) is more concerned with smashing amd, rather than making a quick buck. Anything Intel can do to make amd's life harder it will. Remember amd have been smacking intel around for... what was it.. 3.5 years? Intel want revenge!

3.) Risky move. If it pays off amd could come out with a 3 year head start... in 5 years. Doesnt really solve their cashflow problems now. They can really only afford another 6-9? months like this beofre they run out of cash, let alone develop new pc architecture.

As a business owner myself, the 1st thing u do in lean times is cut some fat. Middle management is usually the first. Maybe lean down r&d in non essential areas. Advertising is a real grey area, u can save a lot on it, but research suggest companies who keep it up during lean times reap the benifits when the market picks up again, so i wouldnt F with it too much.

Awhile back Intel cut like... a squillion ppl. It has still managed to roll out the AWESOME C2D AND has v2 waiting to roll. Its also kept development rolling with 45nm expected to be in your pc before amd can make a 3Ghz dual core.

A.) Cut costs. Let EVERYONE non essential go

B.) Find, and define your competitive advantage. Build products that reflect that.

Knowing what to do is easy, doing it right isnt

2c
April 21, 2007 4:00:24 AM

Quote:
With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.


You really thought that through didn't you? Yes will follow suit if AMD lowers the prices on their CPUs; but Intel has deeper pockets than AMD and would probably weather the storm as AMD prices itself out of business. That's not even taking into account that Intel has other sources of revenue other thatn CPUs while AMD is still in the hole from their acquisition of ATI. Also, your plan would probably be considered dumping and the SEC would help AMD bankrupt itself.

Dude, that's not MY idea. :lol:  :lol:  :lol:  :roll: :roll: :roll:
April 21, 2007 5:08:11 AM

Or AMD could hire their engineers to go dumpster diving for winning lottery tickets that were accidently thrown away.


Shucks darn, why all this doom and gloom from people that can only half read a balance sheet and have no clue regarding the profitability of the individual product lines within AMD?

Does anybody really know what AMD's profits are? Not what is reported to the SEC, but the real profits?

The typical corporation balance sheet resembles the balance sheet from any big ticket movie release. If you believed the finacial results from Shrek or Shrek2 the movies grossed negative $, but here they are with Shrek3 about to be released. Think those movies, or any other movies, really made zero dollars?

Bottom line is AMD making their payroll? When the payroll checks start bouncing, then we can believe the doom and gloom. Until such time AMD is doing well and will give birth to something wonderful within the next month or year or decade.
April 21, 2007 5:48:19 AM

Quote:
Or AMD could hire their engineers to go dumpster diving for winning lottery tickets that were accidently thrown away.


Shucks darn, why all this doom and gloom from people that can only half read a balance sheet and have no clue regarding the profitability of the individual product lines within AMD?

Does anybody really know what AMD's profits are? Not what is reported to the SEC, but the real profits?

The typical corporation balance sheet resembles the balance sheet from any big ticket movie release. If you believed the finacial results from Shrek or Shrek2 the movies grossed negative $, but here they are with Shrek3 about to be released. Think those movies, or any other movies, really made zero dollars?

Bottom line is AMD making their payroll? When the payroll checks start bouncing, then we can believe the doom and gloom. Until such time AMD is doing well and will give birth to something wonderful within the next month or year or decade.


AMD has no profit. They are losing money.
April 21, 2007 5:59:03 AM

AMD could buy a whole bunch of E4300s re-bin them and sell them to oems.
!