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AMD: We're Benefiting from Intel's Woes

By - Source: FOX Business | B 65 comments

Intel's Cougar Point chipset debacle has turned out to be a profitable win for AMD.

FOX Business reports that AMD is benefiting from Intel's current Sandy Bridge platform design "woes" thanks to OEMs and retailers approaching the company for additional supply. The news arrives just after Intel announced that it would resume shipments of the faulty Cougar Point chipsets for use in specific hardware configurations.

In an interview with Dow Jones Newswires, Leslie Sobon, AMD vice president of product and platform marketing, said the company has received hardware requests as a direct result of Intel's issues. "We have some customers and retailers who have come to us specifically as a result of Intel's chip problem," Sobon said. "Some retailers have had to take things off their shelves, so they call us to ask what they could get from our OEMs that's similar. And OEMs are asking us for product, as well."

Sobon admitted that most of the requests are for mainstream setups, typically notebooks costing more than $500. Some are also requesting the company's lower-end Fusion chips given that the mainstream version isn't expected to ship until mid-2011. Of course, there are also requests for AMD's older mainstream computer processors. As Sobon indicated, retailers have contacted AMD about PC's with similar price points or screen sizes.

Naturally Sobon wouldn't reveal the identities of the OEMs and retailers. She also couldn't provide any projections about the financial impact the sudden boost in requests have provided. "We can't quantify it because we're smack in the middle of it," Sobon said. "It's hard to find a pattern because it's different by market and retailer, but it's all over the place in terms of opportunity."

Last week Intel announced that the 6 Series chipset (P67 and H67) had the potential to impact certain PC system configurations--namely a problem related to the 3 Gbps SATA ports 2 to 5 (0 and 1, which are SATA 6gbps ports, are unaffected). Intel said that the affected SATA ports within the chipsets may degrade in performance over time, and potentially completely failing.

Intel is currently working on a new version of the chipset which is expected to head to manufacturers by the end of February. Unfortunately, the motherboard shipments aren't expected to reach "full volume recovery" until April. "We continue to work with our customers to try to get this addressed as completely and quickly as possible," Intel spokesman Chuck Mulloy said Tuesday.

Last week Intel estimated the cost of repairs and replacements of the faulty Sandy Bridge chipsets to be around $700 million. The issue itself is expected to cut first-quarter revenue by $300 million but may not hurt the company's overall full-year revenue.

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Top Comments
  • 14 Hide
    eyemaster , February 9, 2011 6:15 PM
    The majority of consumers buy a "computer", not a phenom or a bulldozer... You are a minority if you're waiting for a certain chip.
  • 11 Hide
    scook9 , February 9, 2011 6:24 PM
    edileeWhat disturbs me in this article is the statement that "Intel announced it would resume shipment of the faulty Cougar Point chipsets"...WTF Intel? They think it is messy now...intentionally selling known faulty product will only make it 10 times worse. Who on earth will be buying the faulty chips...oh wait..HP,Dell, etc....they sell faulty product all the time so this is right up their ally and probably at a decent discount.

    And if you had done 45 seconds of research you would have seen that Intel is only allowing use of these chips in laptops where it will be physically impossible to use a Sata II port that is effected by the defect
  • 11 Hide
    someguynamedmatt , February 9, 2011 6:39 PM
    reprotectedUmm... Who wants to even buy Phenom II? Those are low class compared to what hype Bulldozer has in it's reputation. So where is Bulldozer? I'm waiting so I can compare it with Sandy Bridge for my new computer I've been waiting to build for the last month.

    People who don't want to spend $1000 or more on their new PC. You people need to understand that the enthusiast market makes up a very, very small amount of market share. Not everyone need (or like me, wants) bleeding edge tech. Some people prefer to stick to time-tested models, and do you really need anything better than a Phenom II quad, anyway?
Other Comments
  • -6 Hide
    reprotected , February 9, 2011 6:11 PM
    Umm... Who wants to even buy Phenom II? Those are low class compared to what hype Bulldozer has in it's reputation. So where is Bulldozer? I'm waiting so I can compare it with Sandy Bridge for my new computer I've been waiting to build for the last month.
  • 14 Hide
    eyemaster , February 9, 2011 6:15 PM
    The majority of consumers buy a "computer", not a phenom or a bulldozer... You are a minority if you're waiting for a certain chip.
  • 6 Hide
    theshonen8899 , February 9, 2011 6:16 PM
    Love AMD. Just hope they don't get a problem similar to Intel's in the future.
  • 3 Hide
    edilee , February 9, 2011 6:18 PM
    What disturbs me in this article is the statement that "Intel announced it would resume shipment of the faulty Cougar Point chipsets"...WTF Intel? They think it is messy now...intentionally selling known faulty product will only make it 10 times worse. Who on earth will be buying the faulty chips...oh wait..HP,Dell, etc....they sell faulty product all the time so this is right up their ally and probably at a decent discount.
  • 1 Hide
    geekapproved , February 9, 2011 6:20 PM
    I've seen LOTS of people doing Phenom II builds lately because of lack of SB motherboards. I see a lot less s1156 builds for some reason.
  • 7 Hide
    geekapproved , February 9, 2011 6:22 PM
    The OEM's are using a sata controler card instead of the faulty sata controller on the mobo. This solves the problem. They are not using the faulty controller.
  • 11 Hide
    scook9 , February 9, 2011 6:24 PM
    edileeWhat disturbs me in this article is the statement that "Intel announced it would resume shipment of the faulty Cougar Point chipsets"...WTF Intel? They think it is messy now...intentionally selling known faulty product will only make it 10 times worse. Who on earth will be buying the faulty chips...oh wait..HP,Dell, etc....they sell faulty product all the time so this is right up their ally and probably at a decent discount.

    And if you had done 45 seconds of research you would have seen that Intel is only allowing use of these chips in laptops where it will be physically impossible to use a Sata II port that is effected by the defect
  • 1 Hide
    Anonymous , February 9, 2011 6:26 PM
    You might have to wait til 3rd qtr for Bulldozer. SB will probably be back on track by summer.
  • 5 Hide
    Anomalyx , February 9, 2011 6:38 PM
    reprotectedUmm... Who wants to even buy Phenom II? Those are low class compared to what hype Bulldozer has in it's reputation. So where is Bulldozer? I'm waiting so I can compare it with Sandy Bridge for my new computer I've been waiting to build for the last month.

    Who wants to buy a Phenom? People who care about power-to-price ratio rather than giving no consideration to price at all and chasing after having certain names on/in your computer (i.e. Apple users).
  • 11 Hide
    someguynamedmatt , February 9, 2011 6:39 PM
    reprotectedUmm... Who wants to even buy Phenom II? Those are low class compared to what hype Bulldozer has in it's reputation. So where is Bulldozer? I'm waiting so I can compare it with Sandy Bridge for my new computer I've been waiting to build for the last month.

    People who don't want to spend $1000 or more on their new PC. You people need to understand that the enthusiast market makes up a very, very small amount of market share. Not everyone need (or like me, wants) bleeding edge tech. Some people prefer to stick to time-tested models, and do you really need anything better than a Phenom II quad, anyway?
  • 2 Hide
    snoogins , February 9, 2011 6:42 PM
    Makes sense, even if they don't have something that can actually replace the performance, people's image of intel is a bit off right now. Think of the people who walk into best buy and buy computers. Now think about all the mainstream press (bad) intel has gotten. These people might say.. well... I don't want an intel, only because they messed up.
  • 3 Hide
    LordConrad , February 9, 2011 6:46 PM
    Hey Kevin, I believe the word is "Benefiting".
  • 0 Hide
    Wisecracker , February 9, 2011 6:49 PM
    discothanYou might have to wait til 3rd qtr for Bulldozer. SB will probably be back on track by summer.


    Zambezi risk production is reported to begin in April. I doubt they can move that forward (by very much, anyway). What they may be able to do is re-commit x amount of wafer starts over 4-6 months in one direction or another.

    And that may well be what's up with Llano -- to go head-to-head with the relaunch of Cougar Point. Be less of Zambezi in the channel, and keep that price up :) 
  • 0 Hide
    ltbob , February 9, 2011 6:55 PM
    Lol using a phenom II x4 for Office..

    Silly silly
  • -1 Hide
    hoofhearted , February 9, 2011 6:56 PM
    Intel is only saying that it is the first two ports. I think most people who lack the technical understanding will just make a blanket assumption and either go with previous tech if they need it now or wait for rev 2.
  • -8 Hide
    angela1130 , February 9, 2011 7:06 PM
    LOL @ AMD trying to sell their old chips.
    My Sandy Bridge build rocks.

    I'd rather get a Core 2 duo than a phenom 2 ...
  • 6 Hide
    Anonymous , February 9, 2011 7:13 PM
    I'm benefitting from spellcheck
  • 7 Hide
    KT_WASP , February 9, 2011 7:28 PM
    reprotectedUmm... Who wants to even buy Phenom II? Those are low class compared to what hype Bulldozer has in it's reputation. So where is Bulldozer? I'm waiting so I can compare it with Sandy Bridge for my new computer I've been waiting to build for the last month.


    A lot of people still want to buy a Phenom II actually. The 45nm k10.5 architecture is a proven, reliable product. If you had to buy a computer today, your choices for a platform that is relitivly current would be an AMD socket AM3 or an Intel socket 1156 /1366. Out of those three platforms, the AM3 still has the best price to performance ratio.

    Now, when Sandybridge socket 1155 platform was released, that dynamic changed and Intel was offering a better price to performance raito on the higher end of the spectrum. But, right now, that is a moot point, since you basically cant buy/build a socket 1155 platform at this point and time. So, for buyers on the market right now, they have to look at the three platforms I mentioned above.

    Also, you need to take into consideration the bussiness aspect as well. A lot of buissneses do not buy brand new tech, as early adopters, for the very reason that you see with this whole Sandybridge problem. Bussineses tend not to go bleeding edge, but look to proven platforms that have had all the bugs worked out, are stable , reliable and effecient. Also, buisineses tend to look to price/performance ratios very closely. So, it makes sense that a lot of people still look to an AMD sollution for their computing needs.

    As it has been mentioned, not everyone is enthusiast driven and in fact the enthusiast segment of the market is only a small percentage. So, try to look at it from different angles other then from the mindset of an enthusiast. If you do that, I think you can agree that the AM3 Phenom II's are still a very viable choice today.


  • 0 Hide
    aznplayer213 , February 9, 2011 7:37 PM
    "FOX Business reports..."


    i stop there
  • 0 Hide
    saturnus , February 9, 2011 7:41 PM
    scook9And if you had done 45 seconds of research you would have seen that Intel is only allowing use of these chips in laptops where it will be physically impossible to use a Sata II port that is effected by the defect


    It's both the SATA II hubs that are affected. So that only leaves the SATA III hub. But since that uses 30% more power it doesn't make sense to use that in a laptop.
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