This is one of many articles which are in my opinion missing the mark.
AMD when entering into a combat mode with Intel was out-gunned, out-numbered and out-classed.
By them pulling back and sticking with somthing untils it's right will pay off if they stay with it and not try to compete on every front against a competitor who makes more money in one week than they can make in a year.
The smartest move is for AMD to retreat and pull back to a safe position then regroup. Then take strong positions in the areas they can be successfull in. They got too big for their britches and their pants are hanging around at their ankles and tripping them every time they try to make a move.
At least one thing today which came out today for AMD investors is that Hector did not get a raise and it was misreported. Though in my opinion he should be voted out as there is a serious lack of confindence. The stock price of AMD dropped almost 6% just today below $8.00 a share. I got out just a few months ago at $19 after buying for about $24.
A broker told me I should by back at around $15, I didn't thankfully.
If AMD would concentrate on their discrete graphics low energy products for the mobile market they could possibly dominate that marketplace. Almost all users of laptops I know want something that has long battery life, fast bootup, is light, runs cool and is reliable. Right now Intel preety much owns this with their Centreno design. But if someone had a laptop which would last for 16 hours on a charge, weigh less than 4 pounds, have a solid state drive which boots in a few seconds and be powerfull enough to match the performance and features of machines available today. Myself in at least 10 people I know would drop what they have a buy one.
Agree this is a good move if they can maintain their price advantage for CPUs and still make a profit. While not as fast as Intel for encoding, AMD is not too far behind unlike gaming. When the price comes down the Phenom could be a good CPU for an entry level/entry mid-level video/photo editing machine. While video/photo editing isn't as large as the gaming market and doesn't have the prestige nor the number of people willing to put really big bucks into a machine, it could be a profitable segment.