4.30.2007

AMD Continues to Sell Poorly

It seems that AMD continues to navigate its battered boat in the same course as the perfect storm. It appears that AMD's $900M product inventory doesn't have enough systems built to go to plug into. Bundling, giving away free or even paying customers to actually use AMD processors apparently is an option NOT available to AMD. Expect Ruiz and Rivet to start blaming MB makers next quarter. It makes you wonder if AMD should have bought a motherboard maker instead of ATI.

The catch-22 in AMD's deliverance from the perfect storm is that there seems to be very poor demand for AMD systems for system builders to even start production. Profits and swift product movement on Intel based systems are making AMD's partners partially deaf and apparently very rich. Without channel and partner support, AMD's future appears cloudy (pun). Barcelona needs to make waves and blow C2D out of the water (another pun) to be able to ride out this perfect excuse, er storm.

As for how poor the demand is for AMD, check out the top products from TigerDirect. Intel and NVIDIA along with system builders who bundles INTEL&NVIDIA are making so much money that you'd think its almost an Monopoly. Meanwhile socket 939 continues to sell for AMD. Something is not right with that.

Topseller CPUs - Intel 9, AMD 1 (3800+)
Topseller Video Cards - NVIDIA 10 - ATI 0 (nill)
Topseller MB Bundles - Intel 7, AMD 3 sockets, Chipsets - Intel 4, NVIDIA 6, ATI - 0 (kaput)
Topseller MB - Intel system - 8, AMD 2

14 comments:

Randy Allen said...

Intel has Core 2 Duos at every price point. No one wants to buy X2s anymore.

The only desktop processors AMD is selling above $250 are the 4x4 processors. But no one wants them, not when you can get a Core 2 Quad Q6600 for $550 that will frag an FX-74.

Anonymous said...

With the AMD Annual Stockholder's meeting coming up in 4 days I wonder whether we will see any shareholders step up to the mikes and ask Hector, Dirk, and the rest of the good old boys to submit their resignations for deliberately misleading investors at the Q4'06 Analyst Meeting.

Hey Roborat: since you live in the Bay Area maybe you can rally some people to show up at the Fairmont in San Jose and have some fun.

Is it possible for any shareholder to get up and submit an impromptu motion to vote to throw out the squatters?

Heat said...

I really think you should crash the meeting and hand out "Making profits for dummies" pamphlets at the event.

Roborat, Ph. D. said...

AMD Annual Stockholder's meeting - now that's a fun place to be. A lot of angry people who just lost money.

I heard they're serving crow for lunch.

Heat said...

Whats even funnier is that AMD fanbois have started spinning this whole thing about AMD being in debt, bleeding money and marketshare as a good thing for it. This one dude on sharikou's website actually was arguing who going into debt and not making any money is the way to do business......pathetic.....

Maybe AMD should market itself as a non profit organization like the charities so they can have the public buy their processors out of pity.....

Anonymous said...

"Profit for Dummies!" and "Quad Core CPUs for dummies!", I wonder what AMD would say to leaflets like that being distributed at the meeting.

Scientia from AMDZone said...

heat

"Whats even funnier is that AMD fanbois have started spinning this whole thing about AMD being in debt, bleeding money and marketshare as a good thing for it."

I haven't actually seen anyone say this but if someone has then they are clearly wrong. Cash is always better than debt. The best argument I could make is that the ATI purchase could help AMD get into a better position sometime in the future. However, that future may be 2008 or even 2009. Specifically, unless the AMD factory brandname gets AMD additional chipset sales in 2007 then I wouldn't say that it helped any in the nearterm. But, it obviously, caused a lot of debt in the nearterm.

Overall, I still think that the ATI purchase was the right choice but that doesn't mean that it is without risk.

Heat said...

Wow scientia that is the first post i have seen you make that actually made sense and for a change i actually agree with your point about ATI and AMD's future.

Kinda refreshing to see you talking about AMD for a change not your usual style since you would rather make up crazy stuff and conspiracy theories about core 2 duo rather then talk about AMD's woes which are headlines in most tech websites.

Great work!!! there is hope for your blog after all.

I haven't actually seen anyone say this but if someone has then they are clearly wrong.

Its on sharikou's blog this dude named pezal and ofcourse the ever fudful penix(both i strongly think is the doctor under different screen names).....but then again you cant expect anything but FUD there anyways so it is understandable to read desperate amd fanboi's delusions it always good for a laugh or two.

Anonymous said...

The best argument I could make is that the ATI purchase could help AMD get into a better position sometime in the future.

Woe woe yeah yeah

Roborat, Ph. D. said...

Scientia said: "I haven't actually seen anyone say this but if someone has then they are clearly wrong. Cash is always better than debt."


i guess i can assume you've stopped visiting Sharikou's site.

Overall, I still think that the ATI purchase was the right choice but that doesn't mean that it is without risk.

I think the purchase of a graphics company is the right choice. buying a $5B company to do it is quite over the top.

yomamafor2 said...

scientia from amdzone
Overall, I still think that the ATI purchase was the right choice but that doesn't mean that it is without risk.

I think almost everyone agrees that ATi's purchase was a right one. However, IMO, the timing couldn't be more wrong. AMD simply did not take Core 2 seriously, as Hector simply rebuffed them as if its Intel's desperate attempt.

If they bought ATi during the height of their success, I'm sure AMD/ATi would see better day.

Anonymous said...

Hey Roborat,

Have you taken a look through the full AMD 8-K Convertible Senior Note filing?

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001193125-07-095893&Type=HTML

I wonder how the stockholders will feel about relieving the the directors and officers from having to face the music in case of the inevitable:


ARTICLE 12

IMMUNITY OF INCORPORATORS ,S TOCKHOLDERS, OFFICERS AND DIRECTORS

Section 12.01 . Indenture and Notes Solely Corporate Obligations. No recourse for the payment of the principal of, or accrued and unpaid interest on, any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture or in any Note, or because of the creation of any Indebtedness represented thereby, shall be had against any past, present or future incorporator, stockholder, employee, agent, officer or director or Subsidiary of the Company as such or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes.

Anonymous said...

CEO's are always immune from any company downfall due to business conditions. Except ofcourse if found guilty of wrong doings. - in some cases CEO's have been sued for negligence or malicious intent - roborat

Scientia from AMDZone said...

It's a shame that NewEgg took down their top seller list. You would have a strong point if the TigerDirect ratios could be confirmed at NewEgg.