Re: I'm sick and tired of people saying...
Quote:
Originally posted by AMD_Man
that AMD is going to go out of business. Intel was in the exact same situation 2 years ago ( maybe even worse).
While not having an MBA (my girlfriend & co-investor has one), I should say the real problem is how the question was originally framed.
When you mention going out of business, this is a financial statement, not a product statement.
It doesn't take an indepth knowlendge of memory interfaces, pipelines, or an MBA to spot their problems.
For example, they only had $600 million in revenue for the last quarter. They are spending roughly $200 million a qtr in R&D. Add this on to costs of goods sold, and its a sorry picture.
As long as they can't compete with Intels high end, they can't get the average price per unit up high enough to sustain their effort. Things are only going to get worse for the next 2 to 3 qtrs. They are roughly having to bet the company on Hammer. Personally, while its kind of a nice little CPU, I still don't see how they can charge a premium price for it. 64 bit means squat to most people. In fact I wouldn't be surprised to see Intel put pressure on the FTC to make sure that AMD and computer makers make this clear to consumers. I keep hearing rumors of 2GHz as the top of the line introduction. IMHO that would spell disaster. They HAVE to get out of the cellar quickly in comparison to Intel.
It wouldn't surprise me to see them license the Duron to the likes of VIA and NVidia, and let them build the chip themselves.