Re: the difference is that AMD is losing money, quarter after quarter
As this 2 to 3 year semi crash is ending, coincident with AMD being at the end of a product cycle (when its line is at its weakest) AMD is in an excellent cash position, is introducing new lines of flash (and gaining market even prior to that introduction), is introducing a new line of embedded processors, and is a few months away from introducing the obvious next chip that Intel some how overlooked (a performance compatible X86 64 bit processor).
AMD's costs are far lower than Intel's and, given industry trends towards lower costs, Intel may have backed itself into a corner with its cost structure.
If buyers are willing to continue to pay close to $200 for $25 worth of silicon, Intel can afford to just advertise the heck out of its products and will do great. Intel has built up capacity to produce massive numbers of large, expensive-to-FAB but high performing chips. AMD has put into place a strategy of producing chips at half the cost and equal or a little less perceived performance (actual performance continues to be better on most software). If Hammer works out, AMD will have chips at 2/3's the cost and 120% of the perceived performance of Intel's offerings. I think, AMD is in a better position than it's ever been in at this stage of a semi cycle.
This doesn't bode well for Intel, that tends to have trouble whenever it faces real competition. |
