Originally posted by: Idontcare
Originally posted by: Martimus
I like seing these things, because it means competition, but at the same time this is the sort of thing I was saying that AMD should avoid as well.
Seeing them try to cover all of the markets, but come up short of Intel in most of them probably isn't the way for a floundering company to go.
Cut your losses, and re-emphasize what you do best. You can compete with Intel, but you can't compete with them at everything they do, because you just don't have the resources to do it. Once you have a strong foothold on those core products, you can branch out to these other markets.
A possible factor here is fab utilization versus incremental cost structure.
The incremental cost structure for AMD to sell 65nm Athlons is pretty minimal because they own all the equipment already and they have the fab space sitting there in Dresden just idling.
Very minimal investment cost for AMD to offer these chips, and presumably they are capable of selling them at the current (and future lower) price points for a profit and positive cash-flow.
Were they looking at having to buy new tools or expand fab capacity in order to support this new product lineup then I'd agree with you, stretching a thin company all the thinner. But as it stands, with the current transition of flagship products to 45nm, they have plenty of low-cost depreciated 65nm capacity to put to work on low-dollar saleable product.
Exactly what Via was probably hoping AMD would not do.