Henri Richard explains why AMD failed to gain more marketshare

[xtc28]

@roofus ...... I sure hope they do!

 

[jennyh]

http://www.anandtech.com/weblog/showpost.aspx?i=666

Good article on Anand summing it up.

 

[roofus]

so by Anands article if you subtract the Intel settlement, they would have lost 938 million. i am sure Intel feels good about that lol

 

[jennyh]

Well they would have done actually, because they used current funds to buy back $1bn+ debt. Of course without the cash from intel they wouldnt have bought back the debt 😛

It's kinda thrown the whole Q4 off. They might have made a profit, who knows what else they bought based on that payment? On revenues alone they should have profited by $100m or so based on Q3.

 

[roofus]

so what you are saying is regardless of the settlement, AMD would have cooked the books to show a profit? not being a smartass or anything. i am very glad they are out of the red.

 

[notty22]

so sitting back as objectively as possible, AMD did actually escape red ink this year due to the one time monetary gift/payment/whatever from Intel. they would have on their own steam in short time i believe. now the question becomes can they stay in the black? can they improve their marketing and public perception enough to infiltrate the commercial lines offered by OEM's?

They settled out of desperation, they were looking at consecutive quarterly losses. How often do you hear of a legal settlement agreed upon and full payment withing a couple months. Never, doing this was a win win win for them, Intel wants competition if not for the sake of image with all the FTC and foreign questions of their business practices. So they settle for cheap, let AMD finally not report a quarterly loss, Billions of sales revenue and no profit 🙁 they probably are out of money to pay taxes on their gross revenue. Saved AMD from self-destructing and joining the ranks of Cyrix.

 

[TechnologyCoordinator]

It appears that the reason for AMD's failings is having this guy employed at all, let alone as a VP.

I mean, in 2004, who "would never buy AMD chips?" Really? Even people who prefer Intel can admit that Athlon 64 was fantastic (released in 2003, a VP had to have known they were great for some time before release).

I agree.

I was a HUGE AMD guy back then.

 

[jennyh]

so what you are saying is regardless of the settlement, AMD would have cooked the books to show a profit? not being a smartass or anything. i am very glad they are out of the red.

Well it's not really cooking the books. They have to declare stuff like legal settlements, same as intel had to declare it in theirs.

If you think back, the day after the legal settlement was announced, AMD immediately offered to buy back $1bn or so of their short term debt. They used their own monetary assets for that, not the intel cash. After that there was no way of them not posting a $1bn+ profit once intel had paid up by the end of the month.

 

[jimmysmitty]

Wow. It goes from seeing if Intel was the only cause for AMDs failures to a argument about profits.

Though we had a thread for that......

 

[fazers_on_stun]

Nope the problem is, you don't understand that AMD are, and always will be GF's #1 customer.

That is in terms of revenue, expertise, relations, whatever. AMD will help GF to create the technology that will continue to be used for *other* companies, and AMD will always be the premier customer using the most advanced tech available.

When AMD is done with 32nm, STM/Qualcomm or somebody else will make use of it. That, is how this is going to work.

Why would that be, if as Jay and you say, GF grows & grows to become the world's largest fab operation? If AMD doesn't increase marketshare, due to playing in the wrong markets since they don't have an Atom equivalent, then eventually they will become a 2nd rate customer and maybe GF decides it's too expensive to keep up with R&D on SOI if nobody but AMD uses it. Remember all those process engineers now belong to GF, not AMD, and they'll do whatever who signs their paycheck tells them to do..

 

[jennyh]

And what happens if the 16nm fabs cost $50bn each to build and intel cant afford to build one while ATIC can?

We can play 'what if' forever but so long as x86 is the dominant chip market, AMD will be around and GF will be making their chips.

 

[JAYDEEJOHN]

We will find out this year, Llano

 

[Cryslayer80]

Great work on bribing AMD on the inside, Intel... Your expertise in this job is starting to gently lose bounds and is becoming a grand greatness! Really, Intel should have a new logo and start a new business... A bribing company!

 

[Cryslayer80]

 

[Mousemonkey]

Great work on bribing AMD on the inside, Intel... Your expertise in this job is starting to gently lose bounds and is becoming a grand greatness! Really, Intel should have a new logo and start a new business... A bribing company!

Are you saying that AMD were complaining about everyone else being bribed but accepted a bribe themselves quite knowingly?

 

[verndewd]

Are you saying that AMD were complaining about everyone else being bribed but accepted a bribe themselves quite knowingly?

I think hes saying he hasnt actually read the settlement.

 

[Mousemonkey]

That sounds about par for the course.

 

[Cryslayer80]

How smart of you! I haven't visited this forum for months and the first thing I see is again reminding me not to do so for yet another set of months... I so like your "smartness", your great, intelligent ironic conclusions, your brain avatars and AMD phobia. Swim in it and be happy...

 

[verndewd]

How smart of you! I haven't visited this forum for months and the first thing I see is again reminding me not to do so for yet another set of months... I so like your "smartness", your great, intelligent ironic conclusions, your brain avatars and AMD phobia. Swim in it and be happy...

😱

You self perscribing again?

 

[jimmysmitty]

And what happens if the 16nm fabs cost $50bn each to build and intel cant afford to build one while ATIC can?

We can play 'what if' forever but so long as x86 is the dominant chip market, AMD will be around and GF will be making their chips.

Intel wont have problems like that. GF will make their chips but they will also look out for numero uno. thats a known fact since the main owners want to make money, not lose money.

How smart of you! I haven't visited this forum for months and the first thing I see is again reminding me not to do so for yet another set of months... I so like your "smartness", your great, intelligent ironic conclusions, your brain avatars and AMD phobia. Swim in it and be happy...

Fail.

 

[verndewd]

Intel wont have problems like that. GF will make their chips but they will also look out for numero uno. thats a known fact since the main owners want to make money, not lose money.



Fail.

AMD wants to MAKE money? hmmm I need to review the decisions that have limited their size over the last 20 years,,, you sure they want to make money? :lol: :lol: :lol: :lol:

 

[jimmysmitty]

AMD wants to MAKE money? hmmm I need to review the decisions that have limited their size over the last 20 years,,, you sure they want to make money? :lol: :lol: :lol: :lol:

Yes..... but GFs main owner is not AMD. Its the UAE investment company.

 

[verndewd]

Yes..... but GFs main owner is not AMD. Its the UAE investment company.

I can see them making money, after all AMD built some of the worlds most advanced fabs.

 

[jimmysmitty]

I can see them making money, after all AMD built some of the worlds most advanced fabs.

Of course. They can't get Intel who has the best FABs so go for second best and get other companies to join in with contracts that legally obligate them to paying you for chips even if you have issues with yield or the process like TSMC does. Makes sense.

But I ponder if they might do as that Prince of some country did with Citi..... keep buying stock until you own them or have controlling shares.......

I can see a AMD advertisement now:

"Buy a Phenom III and get a barrle of oil!!!!!"

 

[verndewd]

Of course. They can't get Intel who has the best FABs so go for second best and get other companies to join in with contracts that legally obligate them to paying you for chips even if you have issues with yield or the process like TSMC does. Makes sense.

But I ponder if they might do as that Prince of some country did with Citi..... keep buying stock until you own them or have controlling shares.......

I can see a AMD advertisement now:

"Buy a Phenom III and get a barrle of oil!!!!!"

thats funny considering the news about saudi arabia backing a baath party revolution of western backed iraqi government .
Abu dhabi buys amd fabs ,
dubai enlist world banker family rothschilds to sell off dubai assets ,
us military helps saudi arabia dispose of mossad backed al quaeda in yemen
so in the end they use our military tech to insure they will sell us our pc tech all compliments of the world bank establishment headed by the rothschilds.