"AMD Must Double Processor Market Share to Survive"

[Jake_Barnes]

Advanced Micro Devices needs to more than double its share of the microprocessor market to survive, according to a brief filed by the company's lawyers in its antitrust lawsuit against Intel.

At the end of 2007, AMD had 13 percent of the processor market, "less than half of what it requires to operate long-term as a sustainable business," the brief said, explaining that Intel's alleged efforts to shut the company out of the processor business had largely succeeded.

"Measured on a revenue share basis, AMD made little progress growing its slice of the pie," it said.

The argument that Intel's alleged anti-competitive behavior has so hurt AMD that its future is in jeopardy is crucial to the company's claims for relief, including damages. But the claims could further spook corporate customers already wary of the company's financial troubles....

AMD Must Double Processor Market Share to Survive
© 1998-2007, PC World Communications, Inc.

 

[Aintry]

Once upon a time, AMD didn't exist, and the world somehow managed. Should AMD pass from the scene, life will go on, leaving room for a more competently run company to compete with Intel.

 

[dmacfour]

Too bad ATI will go down if they do, ATI made good products.

 

[TechnologyCoordinator]

For all the fanboys that are about to come out and say the ship isn't sinking, the quote came from AMD employees.

 

[Shadow703793]

That hurts.

 

[Hard Line]

for consumer's sake I hope that doesn't happen.... We need the competition to keep prices down

 

[xx12amanxx]

AMD's not going anywhere! Companies this large and with this amount and kind of resources/technology dont just disapear...They suck at making CPU's that compete with Intel's high end but where is most of the market at?

Hell if they ever did go under i would just order a new intel rig and have it in 3 day's with no regret's.

 

[Just_An_Engineer]

For all the fanboys that are about to come out and say the ship isn't sinking, the quote came from AMD employees.

The quote came from AMD's lawyers who are trying to get an antitrust judgement against Intel. That's a big difference from a statement made by a normal employee.

The caveat here is that AMD needs to double market share if they are to sustain their current business model without restructuring. However, AMD has already begun altering their business model and there is rampant speculation that they will start outsourcing some of their manufacturing.

 

[dragonsprayer]

what a joke

first off, ati can survive on ati alone, amd could fire all amd staff and close all offices and just run as ati!

i love things "like must double" no 80% or 63.78% is no enough only 100% increase in sales will work - what a joke.

LET ME MAKE THIS CLEAR read my posts on stocks prices on intel they are dead on - intel is raising prices and amd will survive since intel will let them.

as predicted the q9300 does not oc as much better then the q6600 - most will say who cares that is less then 1% of the market - but it makes all the difference. As intel moves the 1600fsb the prices are going up, to beat a q6600 now you need a $500 q9550 cpu you can not even get. Why sell q9550 when you can sell qx9650's?

AMD stock is going up on this bad news, typical, what does this all mean? It means AMD stock did bottom, look for my posts months ago.

ATI, finally has its act together and the new 700 series is out in few weeks.

AMD will do what intel did, copy intel, amd is already doing it with 12 core cpu - yes the the old intel 840 technology lives!

2 crappy tri cores (broken quads in package) = 6 core cpu to fight intel's quad.

the $69 question is will software come to amd's rescue with a new mega thread add on needed to make 12 core or 16 core cpus work.

you said 16 cores? lets see 2 quads with hyper threading is a 16 core cpu!

why would intel make a 16 core cpu? they most know that a multithreading software change is coming that will allow all programs to work.

ok enough rambling bs - when there blood in steet its time to get in and AMD is bleeding bad. even if i am wrong ibm will pay $5 with ben bernanke's help like bear stern

 

[nukchebi0]

As long as ATI remains competitive, I don't foresee their demise.

 

[TechnologyCoordinator]

AMD's not going anywhere! Companies this large and with this amount and kind of resources/technology dont just disapear...They suck at making CPU's that compete with Intel's high end but where is most of the market at?

Yes, AMD makes decent mid-range desktop stuff. However, what they don't make is a profit; something they desperately need to stay in business. They have lost investor confidence and need to build it back up by showing a quarter that is at least even CLOSE to being in the black.

 

[endyen]

Once upon a time, AMD didn't exist, and the world somehow managed. Should AMD pass from the scene, life will go on, leaving room for a more competently run company to compete with Intel.

Yah right!
Before AMD, there was no silicon gate, Intel was a $100K startup, and noone had an IC.

Should AMD pass from the scene, life will go on, leaving room for a more competently run company to compete with Intel

Sure, all it will take is an x86 licence, the best minds on the planet in chip design, an army of coders and a couple of $10B fabs. Go for it.

 

[endyen]

Feel the need to really understand what is going on in the law suit? You should read this http://www.theregister.co.uk/2008/05/05/amd_intel_brief_may_5_2008/

 

[spongebob]

The quote came from AMD's lawyers [...]

... according to a brief filed by the company's lawyers in its antitrust lawsuit against Intel.

I grant you that lawyers may not be entirely truthful when representing their clients. The brief no doubt is heavily biased toward the AMD point of view, but with the brief filed in court, speaking about a publicly traded company, they won't want to speak out carelessly.

 

[SpinachEater]

Speaking of AMD, anyone who bought their stocks at $5 just made out yesterday. I thought about doing it but it turns out I missed out on a 1K profit in one day.

 

[radnor]

First off i seriously doubt AMD have that low market share. In a total view.
Maybe in Enthusiast market, well, that probably. But not generally.

Ill give this example. I work in a Customer support multinacional. More than half our PCs are AMD. Just for one reason. For the work we do, we dont need no Q6600. Hell, we wont even notice much if we had. Some work in Linux, some in Windows. This is a small "workplace". We have more than 300 "terminals".

AMD cpus, make the PCs, cheaper, ussually use less Electricity, and for the work we do, suits us perfectly.
This Doomsday post seem to be a bit off the news rolling around and ignoring the war between ATi/AMD , Intel and Nvidia.
That is on the enthusiast market.

As for my "workstation" its a AMD 4000+ X2 with a Radeon X1300. More than enough for the work i do.
I do costumer support FOR companies. Most computers are AMD to reduce to TCO (Total Cost of Ownership). I dont have the global view, but i can say i do have a nice sample.

 

[spongebob]

ATI, finally has its act together [...]

Comment retracted... dragonsprayer was talking about ATI, not AMD. (I should wait until I'm awake before posting)

2 crappy tri cores (broken quads in package) = 6 core cpu to fight intel's quad.

After all their talk about having "native" quads you think they'll go with a glued 6 core? The backlash will be thunderous.

lets see 2 quads with hyper threading is a 16 core cpu!

Actually, it's not.

 

[radnor]

Problem: profits just don't come from market share, for the price AMD's best are going their gonna lose...... I mean like you can still sell orange below cost to undercut your rivals and you'll have a nice market share, but are you gonna sink?

If you only sell 1 product, you will.
AMD have.

CPUs divided in two main categories.
- Enterprise
- Home

VPUs
- Enterprise
- Home

And the still have more smaller bussines from chipsets to TV Cards.
If one of the bussiness is giving low profit, or none at all, there isnt much of a problem.
You will win less money but have MORE market share. I read in daily tech (if recall correctly), AMD sold the CPUs( Barcelona Core) for a TOP 100 cluster/server for less the a dollar each to the chinese government. But of course we are talking about a Top100 cluster/server. It will be in 7 or 8 place world wide. Something like that, cant recall correctly.

Dunno if you see it like this, but i think its a fine way to enter the chinese market. Its a really "small" market, and its a really "bad" move to have one of the most powerful machines in that country.

My 2 cents.

 

[Reynod]

I'm going to take a big swig of AMD koolaid and ...

pray

"Dearly beloved, we are gathered here today ... oops sorry ...

start again ...

"As I walk through the silicon valley of the shadow of Intel I shall fear no further share drops for thou (AMD Koolaid drinkers) art with me ...

Shall I go on??

 

[radnor]

I'm going to take a big swig of AMD koolaid and ...

pray

"Dearly beloved, we are gathered here today ... oops sorry ...

start again ...

"As I walk through the silicon valley of the shadow of Intel I shall fear no further share drops for thou (AMD Koolaid drinkers) art with me ...

Shall I go on??

Your post was enlighted, you shared a imense know how and it a was a foward step to the enrichement of this forums.
If ever move abroad and go work to Intel, i bet both average IQs (from your country and Intel Crew) would go up.

NEXT !!!

 

[Amiga500]

I grant you that lawyers may not be entirely truthful when representing their clients.

Entirely truthful?

 

[SpinachEater]

http://www.semiconductor.net/articleXml/LN787487157.html

 

[TechnologyCoordinator]

The quote came from AMD's lawyers who are trying to get an antitrust judgement against Intel. That's a big difference from a statement made by a normal employee.

The caveat here is that AMD needs to double market share if they are to sustain their current business model without restructuring. However, AMD has already begun altering their business model and there is rampant speculation that they will start outsourcing some of their manufacturing.

AMD wouldn't lie or exaggerate! They're holy, remember!


I do see your point, they may be exaggerating the truth a little bit to try to make a case against Intel.

 

[SpinachEater]

AMD has a big announcement today. Grab the KY ATI....

 

[endyen]

Its not really that bad is it? AMD's coming up with newer processors and the SB750 southbridge looks pretty good.

AMD is selling more chips now than they ever had before.
I'm not sure that thier present financial situation isn't contrived.
Historicly, AMD has used low share points to buy back shares. They have used the profit from reselling those shares, to build fabs etc. It doesn't hurt thier case in the courts either. A lot of the hurt will go away, once the cost of the Ati aquisition is covered.
Hector has always maintained that AMD needs a 30% marketshare to be profitable. They put several quarters of reasonable profits together, with far less % than that. What they really need the 30% for is to break the Intel monopoly.
My last build was an x2 5600. Cost wise, it was that or an E4500.
I know the Intel fanbois will scream, but that was no chioce at all.
For a lot of apps, the triple cores are looking good as well. Many apps can use more than two cores, but dont seem to get much from 4.
AMD will cry and scream that they are being raped, but if the world doesn't go too deep into a recession, AMD will probably see it's first profitable quarter (at least in a while) at the end of the year.