Language Selection

English French German Italian Portuguese Spanish

AMD; Down On It's Luck Again

Filed under
Hardware

Those of us aware of AMD's tremendous potential as a chipmaker have to be disappointed by Apple's recent news that it has chosen Intel as the sole chip provider for its Macintosh computers. In addition to the Apple news, AMD continues to strike out many of the world's largest PC OEMs, such as Dell. If the Apple news is true, this would come as a yet another financial hit to AMD and its strategies. Unfortunately for AMD, it is trapped in a vicious circle of supply and demand.

While manufacturers like Dell, Apple and others do care about performance, value and possible alternative chip suppliers, they always have a difficult time picking AMD as a supplier. The reason is clear: limited supply. Larger OEMs like Dell (and even Apple) demand high volumes of chips to fulfill its orders. Since AMD can't provide such quantities, it's hindering its own success in the market. We can't exactly blame AMD with this because it has to work with the limited financial resources it has.

The vicious cycle for AMD operates somewhat like this: AMD wants to expand à AMD can't expand due to limited revenue à AMD proposes OEMs to offer PCs equipped with its chips à OEMs decline due to lack of enough chips à AMD is back to square one. Clearly, this is neither AMD's nor the OEM's fault. AMD wants to supply its chips, but OEMs need enough quantity to cover the millions of PCs they retail annually.

Since Intel's business ventures go beyond making processors, it can cope with the costs of opening new fabrication facilities, thereby increasing production and offering better deals to OEMs that need to purchase quantities in the millions. Additionally, Intel can accept some losses in its chip business here and there, while AMD really can't.

Though OEMs, including Apple, are aware of the architectural issues with Intel's microprocessors, it's not much of a concern to them. The majority of the market they retail to isn't aware of the issues, and the systems are "fast enough" for the customers they are targeting. How much of the general computing population do you think will know the performance difference between dual-core Intel and AMD microprocessors? Yes, that's right - not very many. The main thing many customers are looking for is affordability and brand recognition, and Intel can definitely offer that.

Full Story.

More in Tux Machines

Native Netflix, Ts'o on Systemd, and Fedora 21 Alpha a Go

In today's Linux news OMG!Ubuntu! is reporting that Netflix is coming to Linux, this time natively. Jack Germain reviews Opera 12.16. Steven J. Vaughan-Nichols talks to Theodore Ts'o about systemd. A preview of new Kmail show radical redesign. And finally today, Fedora 21 Alpha was approved for release! Read more

Ubuntu gets closer to debut in Meizu MX4 phone

The Ubuntu project announced a stable build for Ubuntu Touch phones, a week after Meizu tipped an Ubuntu version of the Meizu MX4 phone due in December. The Ubuntu for Phones team at the Canonical’s Ubuntu Project announced the arrival of the first image from the Ubuntu-rtm (release to manufacturing) distribution for phones. The announcement followed last week’s tease from Meizu, saying a version of the Android-based Meizu MX4 was on schedule for shipping with Ubuntu in December. Read more

Android L Will Keep Your Secrets Safer

Hard on the heels of increased security measures in Apple's newly released iOS 8, Google this week confirmed that encryption will be turned on by default in the next release of Android. Android has offered encryption for more than three years, and keys are not stored off the device, so they can't be shared with law enforcement, Google said. In the next Android release, encryption will be enabled by default. Read more

WHAT THE GNOME RELEASE TEAM IS DOING

At the release team BoF at this years Guadec, I said I would write a blog post about the whats and hows and ifs of release team work. I’m a little late with this, but here it is: a glimpse into the life of a GNOME release team member. We are in the end phase of the development cycle, when the release team work is really kicking into high gear. Read more