The gradual demise of AMD – What happened and what to do next?

Posted on Friday, April 27 2007 @ 0:09 CEST by Thomas De Maesschalck
We have distributors, companies who import goods into each country and resell them. In the AMD heydays, those distributors that imported brands like DFI, Gigabyte and ASUS were going great guns - 939 boards where selling hand over fist - and they could not see AMD going anywhere but up. When AM2 was released, huge quantities of AM2 boards were imported based on the fact 939 systems were selling 500-, 1000- and more units a week. Distributors understand that there is a transition period, so they ordered a few hundred boards via air in order to get them within a week, and then proceeded to order a larger quantity to come in by sea; maybe 1000-units, maybe 3000-units. Based on our conversations with Aussie distributors, coming to Australia, a sea shipment is going to take about 6 weeks from Taiwan or China, by which time the distributor feels comfortable that people will be phasing out 939, and AM2 should really be beginning to pump along with their sales figures.

As week 6 draws closer, however, things are not looking quite right and a large number of AM2 boards from the air shipment are still sitting in warehouses gathering dust. Oh no.

Check it out over at TweakTown.

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