AMD revenue up 18% Q/Q, mobile up 41% Q/Q
Intel BK time may be pulled ahead. AMD 45nm ramp starts in 1H08.
Hector's strategy is brilliant: take market share at all costs, once Intel is pushed down to 70%, it will not have sufficient volume to support its weight. Judging from Intel's announcement of more layoffs, AMD's strategy is working. Those $69 Athlon X2s are just too attractive. Interestingly, AMD's desktop and mobile ASP even went up a bit. The reason is simple: AMD can arbitrarily rate their chips at 2GHZ or 2.6GHZ, and since AMD priced the chips so close, people buy the higher priced ones. Right now, a 3GHZ Athlon X2 is only $159. Are you going to spend $99 buy a 2.5GHZ part or just $60 for a Core 2 Duo killer? The answer is clear for most. 3GHZ is enough to frag most Intel CPUs, and it costs only $159, much less than a good graphics card -- and you got the bragging rights--3GHZ true AMD64 technology with Direct Connect Architecture -- something Intel won't have until 2009. The future is now with AMD64. Intel CPUs are just half-baked clones.
I noticed that Hector is always trying to justify his ATI purchase -- if you look at AMD's results, ATI generated very little revenue --about $300 million -- or 20% of AMD's revenue. Yet ATI has about 5000 workers, half the size of AMD. So the natural question is whether ATI purchase was a good move.
We need not argue on this based on temporary losses incurred due to ATI. Look at the business ATI will bring to AMD -- mobile, desktop, graphics, chipset. With ATI and AMD, the world does not need anyone else as far as x86 computing is concerned.