Language Selection

English French German Italian Portuguese Spanish

AMD; Down On It's Luck Again

Filed under

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

NVIDIA 375.10 vs. Linux 4.8 + Mesa 13.1-dev AMD GPU Benchmarks

In prepping for the GeForce GTX 1050 Linux graphics card reviews this week, I've been re-testing my various AMD and NVIDIA graphics cards atop the very latest driver stacks. As a precursor while waiting for the GeForce GTX 1050 Linux review in the days ahead, here are those fresh benchmarks of the other graphics cards. Read more

Tool That Lets You Install Ubuntu Touch on Your Mobile Device Now Supports Maru

It's been a little over a week since we told you all about Marius Quabeck's awesome new tool that lets you easily install the Ubuntu Touch mobile operating system on your device, and it looks like the developer was quite busy adding new functionality. Read more

3 open source time management tools

For many people, one of the reasons they cite for using a Linux-based operating system is productivity. If you're a power user who has tweaked your system just to your liking, and particularly if you adept at the command line, chances are you've realized significant gains in productivity. But do you have to be an extreme power user to make use of open source software's ability to boost your productivity? Absolutely not! Read more

An introduction to Mozilla's Secure Open Source Fund

Thanks Mark. Mozilla is a unique institution—it's both a nonprofit mission-driven organization and a technology industry corporation. We build open source software (most notably the Firefox Web browser) and we are champions for the open Internet in technical and political fora. We've been a global leader on well-known policy issues like privacy and net neutrality, and we're also very active on most of today's big topics including copyright reform, encryption, and software vulnerabilities. Read more