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Old 04-08-07, 03:00 PM   #13
Madpistol
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Tho Jo Smale
I do not understand where this idea has come from. Can you please elaborate?

Prices on CPU's come down...not go up?

I've never seen 1000 lot prices increase after initial inception of a product, especially not 6-months to a year later.


JC
It's very simple.

Intel will literally have a monopoly if AMD dies (not physically though. IBM still makes chips)

If they are the only ones in the consumer processor market, they can dictate the prices at whatever they want to and people will buy them. The higher the prices, the higher the profit margin, and without any competition, they have absolute control over prices.
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Old 04-08-07, 03:03 PM   #14
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Default Re: AMD layes off employees,in seeking cost savings

AMD has acquired assets recently. After acquisition, most companies typically trim the fat to increase operational efficiency.

AMD is STILL hiring here in Austin for signal integrity testing, as are Intel and other companies.
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Old 04-08-07, 03:30 PM   #15
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Madpistol
It's very simple.

Intel will literally have a monopoly if AMD dies (not physically though. IBM still makes chips)

If they are the only ones in the consumer processor market, they can dictate the prices at whatever they want to and people will buy them. The higher the prices, the higher the profit margin, and without any competition, they have absolute control over prices.
AMD isn't going to go belly up. Why is it that unless a company is on top continually- everybody claims that company is going under? AMD is gonna' be here for a while, and I'm quite confident that they will either tie for performance or surpass Intel before too much longer. And then in another 6 months or so Intel will do the same to AMD, and it repeats.
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Old 04-08-07, 03:43 PM   #16
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Redeemed
AMD isn't going to go belly up. Why is it that unless a company is on top continually- everybody claims that company is going under? AMD is gonna' be here for a while, and I'm quite confident that they will either tie for performance or surpass Intel before too much longer. And then in another 6 months or so Intel will do the same to AMD, and it repeats.
When was the last time Intel had a market share as low as AMD's?

Intel has routinely spent almost as much on R&D as AMD earns. Is it a surprise that they have the better product currently and are working on a few different options while AMD concentrates on fixing Barcelona?
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Old 04-08-07, 04:04 PM   #17
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Sazar
When was the last time Intel had a market share as low as AMD's?

Intel has routinely spent almost as much on R&D as AMD earns. Is it a surprise that they have the better product currently and are working on a few different options while AMD concentrates on fixing Barcelona?
No, and I never said it was. But the doom-sayers just get annoying. AMD generated a lot of income over the past several years- and even has contracts with the likes of Dell and other such major companies. Plus there are the sales from the 360, integrated devices (cell phones and such)- AMD still has a lot of revenue generating sources. They aren't going belly up anytime soon. And it annoys me that just because Intel 1upped them that every body starts saying AMD is doomed.

Even with all of Intel's $$$ they still got thier @$$es handed to them with Netburst. All AMD needs to do is exploit Conroe's and Kentsfield's weaknesses, and then 1up thier strong points. I see no reason while AMD can't do this. And then in 6 months or so Intel will one up AMD and it will probably just keep repeating back and forth this way.

But AMD is not gonna' disappear any time soon.
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Old 04-08-07, 04:12 PM   #18
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Default Re: AMD layes off employees,in seeking cost savings

My post wasn't meant to come off as it did buddy

And yes, the pessimists are being awfully pessimistic
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Old 04-08-07, 04:27 PM   #19
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Sazar
My post wasn't meant to come off as it did buddy

And yes, the pessimists are being awfully pessimistic
I thought it seemed a bit odd, as you are the one with the thread about how Barcelona very well might outperform the Core2.

My bad.
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Old 04-08-07, 04:34 PM   #20
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Default Re: AMD layes off employees,in seeking cost savings

Yah, my implication was I doubt Intel is going to be able to loose that much market share. At the worst, I expect parity. There should, theoretically be a decent change-over from single-core to multi-core systems throughout the country and the world coming up which should keep driving revenues for a while.

More powerful, cheaper, more-energy efficient procs are always good news
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Old 04-08-07, 06:23 PM   #21
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Default Re: AMD layes off employees,in seeking cost savings

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Well, hopefully they will recover from that. They've been beaten pretty hard before and still pulled through. Here's hoping that they will manage to pull through yet again.
Well things was not the same as it were 10 years ago, it easier for AMD to invested a few hundreds millions dollars in R&D and get $500m to $800m loan to build a fab in 1997. But since 1997 the economy were changed, science and technologies getting more and more advanced all the times, the R&D and fab costs soaring every year. This time AMD are find it very hard to invested more than $1bn in R&D and more than $1.5bn loan to use existing 2 fabs and dont forget the rest costs goes on fabs upgrades & conversions like from 90nm to 65nm. If AMD want to build 3rd fab to produce 32nm, it will cost the company $3bn and process smaller than 32nm will cost $3.5bn and beyond that AMD are no way can afford it, here is only one company can afford to build 32/22nm fabs is Intel.

AMD likely will not survive through end of 2007 and beyond without raised extra $1bn need to help pay off $3.8bn debt repayments because by end of June they will have just about $600m cash left. AMD will spent $200m in July, another $200m in August and last ever $200m for September while stock still lose money and profits plunge. I think it are too late for $6.8bn AMD to recover the long way up to $24bn it was worth back in Jan and Feb 2006, they are not fit to have another price war with Intel after June when they response AMD 65nm Barcelona with Intel 45nm Penryn and then in 2008 with 45nm Nehalem core with up to 8 cores on a die that has answers to AMD on-die memory controller, HyperTransport and also AMD Fusion due in 2009, late again.

http://notablecalls.blogspot.com/200...part-2_04.html

Things could get much worse if AMD decide to delay supply R600 and Barcelona due to AMD inventory problem they struggling to get clear obsoleted 90nm products then AMD could fold sooner than end of September if they still cant make money from obsoleted 90nm products that nobody want it.
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Old 04-08-07, 06:39 PM   #22
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Redeemed
Not a good sign. I hope they can keep things together. We need the competition against Intel and nVidia.
QFT. We don't want Intel getting a monoply on the market and jacking up their prices.
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Old 04-09-07, 01:01 AM   #23
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Default Re: AMD layes off employees,in seeking cost savings

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Originally Posted by Madpistol
That's what intel did before they released the Core 2's to the market. Perhaps this is a sign of things to come from AMD.
yes, but Intel still owned the larger percentage of the market. AMD does not have that advantage atm.
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Old 04-09-07, 02:44 AM   #24
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Default Re: AMD layes off employees,in seeking cost savings

AMD will hopefully get an influx of cash from somewhere/some investor. That is the only way they can stay afloat. Sure they garnered some respect from large businesses but most large company's lease their servers and workstations, and equipment turn-around is a lot shorter as a result. The next lease rolls over the next few months will probably start swinging towards machines with the Intel CPU's again. Worse, AMD had the performance crown for quite a long while before I started seeing machines with AMD cpu's at my job. So there is also a huge lag factor. I don't think the lag swinging back to Intel will be near as long though.

If AMD cannot regain a foothold in a hurry, and they probably won't - can't, all bets are off that they remain viable unless someone hands them some cash, or Intel buys them :-) (man, that would suck!) Where is 3DFX? The cycle up one-upping the competition has much more effect these days than it did 10 years ago. Brand loyalty makes little business sense anymore.
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