Article : AMD Covets Notebook Market
1GHz Athlon 4 and battery-saving Duron are just the beginning
BY TOM MURPHY -- 5/14/01
Advanced Micro Device Inc.'s (AMD) Palomino line of microprocessors is likely to cause some bald spots on a few executive heads at Intel Corp., according to one analyst, because AMD's microprocessors offer key features for the two mobile-computing segments—market segments for which Intel does not yet have an answer.
Today in Sunnyvale, Calif., AMD will launch the Palomino core-based Athlon 4, a chip designed to let AMD compete in the performance notebook segment. While the company has increased its market share in the PC desktop space with other versions of the Athlon as well as its Duron microprocessor, Palomino-based processors will position the company in the mobile, workstation and server segments, according to Mark de Frere, Athlon brand manager for AMD.
The Athlon 4 is clearly lined up with Intel's Pentium 4 flagship processors, according to Nathan Brookwood, an analyst with Scottsdale, Ariz.-based IC Insights.
However, AMD is making the Athlon 4 available for the performance notebook segment today, while Intel won't make the Pentium4 available until 2002.
In addition, AMD is increasing the pressure on Intel by offering a Palomino-based Duron microprocessor for the value notebook segment. This Duron will come with AMD's Power Now technology, designed to extend the battery life through power and voltage scaling at the processor core.
Although Intel has its own battery-management feature, known as Speed Step, Intel does not offer it in its Celeron line, Brookwood said. The Celeron microprocessor is Intel's answer for the value notebook market.
"For corporate IT buyers, systems equipped with the (Palomino-based) Duron may be more compelling," Brookwood surmised.
The Athlon 4 for the performance mobile segment, or laptops priced above $1,500, is designed to deliver 15 percent more performance than previous Athlons, AMD's de Frere said.
In addition, de Frere stated that the chip will out-perform comparable Pentium 4-based systems by 40 percent to 50 percent. "It's really going to kick their butt," de Frere said.
In the second half of the year, AMD plans to launch Palomino-based chips for desktops, workstations and servers, giving the company the ability to compete in the multiprocessing segments for the first time, de Frere said.
"I think we are looking at a very workable strategy for AMD," IC Insights' Brookwood said.
AMD is using the leverage it gained from the K6-2 processor in the North American small-business desktop segment as well as the momentum it gained in the European and Asian business segments to earn additional design wins. AMD's de Frere said Compaq Computer Corp. would ship Athlon 4-based systems immediately. The chip company said it expects other OEMs to ship Athlon 4-based systems within the quarter.
The Athlon 4 is available in versions with rated clock-speeds of 1GHz, 950MHz, 900MHz and 850MHz. Without going into specific details, de Frere said that AMD is shipping 1GHz Athlons at $425, while Intel is charging more than $700 for Pentium 3 chips.
The Duron, which makes its debut with speeds of 800MHz and 850MHz, is being positioned by AMD on price as well as its battery-saving capability.
AMD will make announcements regarding its Palomino-based desktop processors in the second quarter, with announcements regarding its multiprocessing cores coming in the third quarter.
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