AMD has a lot to learn from Intel
AMD is scheduling a tech analyst meeting in June. What is the point? Call up a bunch of financial analysts to look at some chips, then what? The world+dog is still wondering if AMD has something -- people need to run their benchmarks and talk about numbers.
Intel put two boxes at IDF and the whole world cheered. Henri Richard must admit that that was brilliant guerilla benchmarketing.
I projected another round of GHZ war when Intel announced going Pentium-III last year. AMD should prepare for that.
Intel is peddling its Pentium D805 dual core for $120, AMD needs to react to that with something like a dual core Sempron.
posted by Sharikou, Ph. D. @ 4/13/2006 05:26:00 PM
7 Comments:
Dual-core Sempron is the worst AMD scenario. :)
Without proper capacity (and they don't have it as I written on my last comment), competing on low-cost big-die market is a lost fight.
AMD has profits because X2 line is a premium over single-core CPUs.
When AMD will lower the X2 3800+ - this will be a signal that capacity is higher or...Intel is pushing and AMD has to lower the margins.
Miki
"Intel is peddling its Pentium D805 dual core for $120, AMD needs to react to that with something like a dual core Sempron."
Yeah, launching a money-loser is a great idea when you're heading towards a day you know you have to cut your prices by up to 75% to compete.
AMD is in collecting mode right now.
Its Intel doing the reacting, AMD is focused on the server, mid and high end desktop and notebooks, and making good money to compete with Intels low end dual cores is to compete with charcoal, laughable.
Once AMD releases a dual core Sempron, Intel will have a hard time selling any of its dual core desktop chips. Remember, AMD's task is to take market share from Intel. For that to happen, it must make people buy less Intel.
Before AMD have the capacity to supply more than 60% of CPU market, AMD should focus on profitable high-end product(to collect money).
Only when AMD has the capacity to supply more, then, AMD can play to price war to hurt INTEL.
What does AMD have to learn from INTEL?
1. Dominate the market (80% monopoly)
2. Limit inovation but force what *you* (intel) think the market needs/wants down their throats.
3. Sell as many processors as you can
I don't think AMD wants to play by Intels rules. You have stated repeatedly that AMD is disapointing you or that management lacks 'think big' mentality.
What if they are on a different path?
Such as being the Mercedes-Benz of server processors and high-end workstations with a 'low volume / high premium' business model.
What if their extra capacity is because they want to create an 8-core/16-core processor now (similar to Sun). They would then need all of the extra FAB capacity to produce all those cores.
Or based on that french article you referenced, they want to create a virutal processor from a 16/32-core processor so they can market it as a 96 GHz processor
(or first 1 THz processor).
Hector Ruiz is a smart guy, I think he's got a vision which some of us may not quite understand .
And a lot NOT to learn from Intel.
Don't fire people for being smart. Don't fire people because they listen to the customer. Don't fire people because they balk at putting the govware into the chip. Intel chased their talent out the door.
Let us hope AMD does not do the same.
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