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AMD ready to take on Intel

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July 15, 2004 9:38:37 PM

It was never a question about performance, where clearly the Athlon64 dominated, it was a question of AMD's financial situation. In the past AMD made decent performing chips at low costs (XP's) however this has come back to haunt AMD recently.

THEY COULD NEVER MAKE A PROFIT

However the Athlon64 and the new pricing system changed that. AMD has come to realise that in order to compete with Intel,they need a sound financial backing for other purposes (e.g advertising). How many AMD adverts do you see on TV??? The new pricing structure of the 64's and Semprons is a new bold step for AMD, no longer are they the discount chip manufacturers, they are world leaders!!!

I applaud AMD and congradulate them on their financial results. For once, the competion can soon be played on an even level. Intel watch out!!!

More about : amd ready intel

July 15, 2004 10:53:54 PM

You may have missed a few points.
1 The main source of improved income is Flash
2 While thw upper chips are expensive, the majority of chips sold fall in the low end, mostly 2500+.
3 Amd is forced to limit the # of high end chips sold, by using inflated pricing, because they lack the fabs to make the chips that they could sell.
Until Amd has more production capability, they can only be considered the other player.
4 So long as Intel controls the industry, Amd will have to compete with Intel prices.
Just as most of Amd's problems can be layed on the doorstep of a sluggish market, it's recent gains go to the market improvement.
Personally I could care less if either Amd or Intel bleeds red ink for a while. So long as they are compeeting to give us the best tech possible.
I am a price/performance fan, if Amd keeps up it's inflated pricing, celeron D will be the system I build for most of my customers.
July 15, 2004 11:39:18 PM

I don't think Intel is going anywhere. As much as I like AMD the numbers don't lie:

_________________AMD_____________Intel________
Total Revenue:__$1.262 billion______$8.05 billion
Net Profit:______$32 million________$1.8 billion
Gross Margin______38%_____________59.4%

Some quick math shows that Intel had over 6 times as much in total revenue, but over 33 times the profit of AMD. Intel is much more efficient at the moment, and AMD has a looooong way to go.

He that but looketh on a plate of ham and eggs to lust after it, hath already committed breakfast with it in his heart. -C.S. Lewis
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July 16, 2004 12:45:09 AM

Here's another number for you. Intel has a 90 day inventory on the shelves. This is the largest inventory they have had to carry in ten years. :smile:


Abit IS7 - 2.8C @ 3.4 - Mushkin PC4000 (2 X 512) - Sapphire 9800Pro - TT 420 watt Pure Power
Samsung 120gb ATA-100 - Maxtor 40gb ATA - 100
Sony DRU-510A - THAT'S MORE LIKE IT, MSI!
July 16, 2004 2:54:59 AM

Believe me, there's lots of people to sell those prescotts to... Don't underestimate the number of unsuspecting customers. And those that have been brought to suspicion will be dealt with by Intel at some point in the future - unless they really want to shoot themselves in their proverbial feet.

As for me, well, I don't care! I just hope we get the best out of it.

<i><font color=red>You never change the existing reality by fighting it. Instead, create a new model that makes the old one obsolete</font color=red> - Buckminster Fuller </i>
July 16, 2004 1:50:34 PM

Exactly. And factor into that that the new prescotts aren't really crap, they're just somewhat inferior in terms of performance (if compared to A64), and they give off lots of heat... It's not as if they are absolute crap.

In that sense, they're not lousy purchases like Celerons. I guess they will sell themselves anyway, at those clock rates...

<i><font color=red>You never change the existing reality by fighting it. Instead, create a new model that makes the old one obsolete</font color=red> - Buckminster Fuller </i>
July 16, 2004 4:18:48 PM

The funny part is : Intel lovers will see this as a victory...

Toms Hardware Site is a joke !
Looks like intel spent more on bribing reviewers to cover up it aint that great than they did in R&D, you know what im talking about Tom !
July 16, 2004 5:16:00 PM

They probably will. After reading summeries of the quarterly business reports for both companies it looks like they are both doing very well, it's just that Intel is much more established and AMD is playing catch up (in terms of market share and profitability, not technology).

Having said all of that, personally if I was building a computer right now I would buy AMD, no question.

He that but looketh on a plate of ham and eggs to lust after it, hath already committed breakfast with it in his heart. -C.S. Lewis
July 18, 2004 12:28:52 AM

Quote:
Here's another number for you. Intel has a 90 day inventory on the shelves. This is the largest inventory they have had to carry in ten years.

It does make me wonder.....when Intel finally gets it in gear, what would stop them from flooding the market with all this excess inventory, so that they could devestate AMD's profit line? They could easily flood the mainstream with all current stocks, and market the new for enthusiasts.



<font color=blue> Did you know that 89.72% of all quoted statistics are false? </font color=blue>
July 18, 2004 1:40:55 AM

If this goes on much longer they will have to cut prices. Nobody can afford to have that much unsold inventory on the shelves, even Intel.

Abit IS7 - 2.8C @ 3.4 - Mushkin PC4000 (2 X 512) - Sapphire 9800Pro - TT 420 watt Pure Power
Samsung 120gb ATA-100 - Maxtor 40gb ATA - 100
Sony DRU-510A - THAT'S MORE LIKE IT, MSI!
July 18, 2004 1:46:28 AM

it is though.

Prescott 3.0E 1MB L2 HT
1GB PC 3200 Dual channel(PAT)
Asus P4P800 Bios 1016
ATI Radeon 9800 Pro
42,801 Aquamarks
July 18, 2004 3:39:54 AM

Something tells me it is not the idiot on the street who is holding back on the P-hots. If I were the one warrantying systems I might not like to sell P-hots or LGA775 setups. It is too much risk.
July 21, 2004 11:26:05 AM

Yeah the financials have changed slightly, but the playing field is FAR from even, as others have pointed out. I'm also not quite sure if AMD's current technological lead is all that relevant in the big picture..it may have come a bit late. I know this has been predicted for decades, but these days, i'm not sure if ever faster CPU's still drive the business. Enough is enough, and I think we're pretty damn close to point where our computers are just fast enough, and doesnt matter a whole lot to most consumers experience wether you get a $500 budget PC or a $3500 alienware setup.

Sure there are niches where faster will always be better, games being perhaps the single most important one, but for >90% of the consumers, I think (fear ?) a current 3000+ class computer will be all they need for the foreseeable future. Heck even a 2000+/2GHz is plenty for most things. And for those intereseted in games, consoles might further shrink the market potential for both AMD and intel.

What is left is the new markets (China, South America, Africa,..) for low end stuff and the niches (workstations, servers,..) and notebooks. AMD maybe in a better position , for the low end stuff (lower overhead) and the high end niches (better technology), Intel is currently untouchable when it comes to the mobile market.

All in all, over the next 5 years, I really do not expect AMD to overtake Intel in anything but bragging rights (benchmarks), and I expect both Intel and AMD to have to change their current business model and product portfolio substantially. Which ever company does that better, will come out better, but I aint taking no bets either way. Both companies are seeing the writing on the wall though, AMD with its Sempron line and expanding into new (for them) markets like HPC, servers, workstation, and Intel has been trying to diversificate (word?) desperately for decades but with little or no success so far. Interesting times lay ahead for investors, but maybe not that interesting for enthousiasts....

= The views stated herein are my personal views, and not necessarily the views of my wife. =
July 21, 2004 4:23:20 PM

Your post was one of the most well reasoned, rational and balanced pieces I've read in the month or two I've been on this board.

Bravo!!!!!

Da Worfster

If you don't stand for something, you'll fall for anything.
July 21, 2004 10:22:30 PM

thx.. to join my fanclub, please donate $50 through paypal and receive my infamous weekly newsletter "P4man knows PC" once every decade, free of charge and if you send me two T-shirt (one XL) I'll gladly autograph one and send it back at your expenses ;) 


= The views stated herein are my personal views, and not necessarily the views of my wife. =
July 21, 2004 11:22:01 PM

Nice to see the ego is bigger than the man :smile: .

Xeon

<font color=red>Post created with being a dickhead in mind.</font color=red>
<font color=white>For all emotional and slanderous statements contact THG for all law suits.</font color=white>
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