Amd Marketing Report Essay Research Paper Computers — страница 2

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return on equity than the semiconductor industry. ( AMD believes that world is enhanced through informational technology. Informational technology is the essential part in current environment. AMD is a leading supplier of critical technology in our age of information and technology. In concert with our customers, we empower people everywhere to lead more productive lives by creating, processing, and communicating information and knowledge. ( Also AMD believes that respect for people is the essential part of doing business. “People first, products and profit will follow.” (Jerry Sanders, President of the AMD) Now let s approach the actual product. AMD Athlon+ is the seventh generation of the CPUs with so called x86 architecture, which is now used mainly

for Windows+ computing. AMD went in to the CPU market in 1991 with the introduction of AM386 microprocessor family. So, their first processor was at that time the product of so called third generation. With entering the CPU market AMD actually broke the Intel monopoly on the x86 microprocessor market. AMD continued it effort to gain a market share from Intel in this market and for many years they did not have a lot of success in that area they products came out after the Intel s products, so basically they were the followers on the CPU market, until 1999 when they were the first to introduce seventh generation of the x86 CPU, Athlon. Athlon was the first processor to outperform Intel s top processors. From that moment AMD finished to be just the market leader follower, Athlon

allowed company to set new standards in the High-End computing rivaling Intel in its domain. To give you a glimpse of how significant the changes here is the part of the article from the Electronic Engineering Timesthat gives us a clue of what will happen on the CPU market this year. Intel (Santa Clara, Calif.) reported total revenue of $8.7 billion in the fourth quarter and anticipates a drop of as much as 15 percent in sales this quarter. Fourth-quarter revenue was flat compared with the preceding quarter, and up just 6 percent from the same quarter in 1999. A 15 percent sequential sales decline would be the largest in Intel’s history. Meanwhile, AMD reported revenue of $1.2 billion for the fourth quarter, up 21 percent from the fourth quarter of 1999 and flat from the

preceding quarter. AMD expects sales in the current quarter to be roughly flat, Sanders said. AMD also reported net income of $178 million for the quarter, while Intel posted net income of $2.6 billion. Total sales for 2000 were $4.6 billion at AMD-up 63 percent from 1999-and $33.7 billion at Intel-a 15 percent gain over 1999. “AMD had the best year in its history,” Sanders said (Electronic Engineering Times, 01/22/2001 Issue 1150, p14). So, why is this product doing so well? First of all it was first on the market and it gave it competitive advantage. Athlon outperformed its rivals in many benchmarks, run by an independent sources. Another strong point in the argument for this product is that supplier (AMD), was able to meet consumers demand for this processor at all times.

AMD introduced Copper chip production full year before the Intel. Although they use it only in their newest plant Fab30 Dresden. This vital technology allows using copper to be used as the material for interconnects (aluminum is used worldwide by other producers). As the copper allows for higher clock speed of the CPU, lower power consumption and lower the heat that the CPU produces during its work. AMD now want to focus on Athlon s performance characteristics as the way to beat Intel and gain customers. There are some distinguishable characteristics that set this processor apart form its rivals: 1. It provides exceptional processing power on real-world, mainstream Microsoft+ Windows+ software, as well as computation-intensive application for high-end desktops. 2. It provides the

most powerful Multimedia experience in an X86 platform with its cutting edge Enhanced 3Dnow instructions as well as having all the instruction of its rivals. 3. It provides the people with tomorrow s technology today by having the most advanced x86 microarchitecture. 4. Atlon provides the most powerful floating point capability today, this allows for the computing applications to run faster and smoother even on such performance requiring environment as 3D design, CAD, CAM, etc. 5. Outperforming rivals that at the same and even higher clock speeds. Athlon addresses customer needs in all those categories, by providing the high-end processor that enables people to experience outstanding performance, high reliability. AMD is trying hard to attract corporate buyers and this year is