Ephud,
The chipsets and graphics come from foundries which have to make their profit too. I don't see much of a market for highend graphics in lowend systems,
ATI made a profit on chipsets prior to AMD's buyout... Are you insinuating that this is no longer the case?
As for market share, AMD does not have a compelling product in any market segment with significant profit potential.
I'm not sure about this... I think that many would choose an AMD processor coupled with an ATI chipset and integrated graphics over Intel's Core II with Intel's weak integrated graphics...
However, I probably neglected to mention that one of the <reasons that I picked up more stock is that I agree with you that AMD is completely misfiring on multiple fronts which has, IMHO, provided a buying opportunity. I do not expect AMD to become competitive on the high end anytime soon, but, fortunately, the notebook market doesn't require highend processors. I expect that in April/May, AMD WILL have a competitive (or at least sellable) alternative for the notebook market which is becoming increasingly more important, AND, is the one segment in which AMD has a virtual lock on chipsets in any AMD based systems.
All they can do at this point is try to under price Intel in the low to midlevel market,
And I'm under the impression that this segment accounts for the majority of the unit shipments... So, you agree that AMD is in the game in this segment... Good. Me too... :)
there is little to support the view that AMD will be gaining market share any time soon
I believe that AMD will sell whatever they produce and that they will produce whatever they can. I think the only limiting factor on market share is AMD's ability to produce more chips, which, should continue to improve as FAB 38 continues to ramp up 65nm 300mm product. They will sell at whatever price point the market will bear, which, will be lower if AMD continues to stumble, but, IMHO, I anticipate that by April/May, we should have a better idea what will unfold in Q3 and Q4...
With my "speculative money" I have placed a bet that they will correct some of the problems they have been having. If they weren't having problems, then, I would never have been able to pickup stock under $7/share...
Scott |
