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AMD's future business strategy discussed

Posted on Saturday, December 06 2008 @ 09:46:48 CET by

Hexus had the opportunity to visit AMD's new Lone Star campus in Austin, Texas last month and has published a 10-page article to discuss where the chip maker is going now. Check it out over here. Here's a snip from the conclusion:
Let's be brutally honest here: if Intel wanted to drive AMD out of business it could do so just by cutting CPU prices for as long as it took. However this would leave Intel with an almost complete monopoly and would make the kind of anti-monopoly attention Microsoft has received - let alone its current struggles with the European Commission - pale into insignificance.

So comparing AMD's fortunes to Intel's, in an absolute sense, has limited value. What is vital is how AMD is going about taking some market share from its giant rival. AMD is never going to come close to Intel's spend on R&D and marketing, and it's hard to see how AMD can prevail in a straight fight, so it has to be smart about how it uses what resources it has.

With asset smart finally culminating and 2008 marking a distinct improvement in product execution, AMD is definitely in better fighting shape than this time last year. However, AMD is still consigned to a fate of having to fight on many fronts with fewer resources.



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