AMD: What happened?

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Obsoleet

Platinum Member
Oct 2, 2007
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Today the Bulldozer situation is much worst imo. There is literally no argument you can make for getting a Bulldozer CPU. Intel has a CPU that can beat Bulldozer at any single task you can think of... and often times for less money.
That's true, but demands of a CPU in the market have changed dramatically. Agree on prices for sure, but I'm guessing they're still selling somewhere or the prices would drop.

From a business perspective Intel is a much smarter company. Sure AMD will sell you a quad core CPU for $100 and make virtually nothing on it, Intel will just say go ahead you can have that market segment... if we can't put out a CPU at that price point with the margins we want we won't put it out.

AMD has to get rid of the product they have though. Not moving the product at all is worse than selling even at a loss.
 

sequoia464

Senior member
Feb 12, 2003
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The way I see it is that AMD made a judgment call 4-5 years ago and assumed that software progression would keep up with and even out-pace an ever-upward-scaling core count in the computing world that would try to feed the software that favored moar coars over IPC. It was a piss-poor call. Somewhere along the way somebody should have said "Hey, wait a minute. Maybe we were overly optimistic in our assessment." Instead, they stuck with it and the delays were both due to GloFo as well as an attempt to cover up the poor performance -- I think that's why it's got so much damn cache and was about 2 years too late.

I think they can certainly do quite a bit to patch it up, but what it's going to require and the amount of time that's needed is another story. They wanted to hold IPC the same with Bulldozer but missed that mark by -10%. In certain cases, a 2500K beats an 8150 by 40-50% in single-threaded performance. That's absolutely atrocious and they quite simply don't have a chance in hell of closing that gap with Piledriver nor Steamroller. I'm guessing they'll try their best by addressing the uberslow cache speeds, bump up stock clocks and that will allow Piledriver to do well in highly-threaded workloads and get close to or even slightly beat the 2600K (remember, that was the whole intent of CMT anyway) but will still display its weaknesses in low-threaded applications but by a smaller margin

What will be really interesting is to see if there was something that was missed and can be improved within the fetch/decoder within a module so that -20% performance hit within-module can be mitigated. I think any changes for the better on that end will help them tremendously as far as highly-threaded workloads go. Basically, attempt to make CMT look less like CMT as far as benchmarks go but still advantageous on the fab and $$ side.

edit:

Just want to add that if you see Piledriver stock clock speeds increased drastically (and judging by the Trinity APUs that does look to be the case) I'd be extremely wary of any significant IPC increases. What they did was lengthen the pipeline and increase the latencies (the cache being the biggie here) so the high clock speeds was something that Bulldozer required in order to make up for that intended IPC halt. Higher clock speeds at lower TDP likely means the cache speeds haven't been addressed and instead they're ramping up the clock speeds on a more refined process in order to make up some ground in per-core performance. Those would be the bad signs.

Unfortunately it seems that's exactly what AMD did. I ran the numbers on Trinity's clock speed in comparison to Llano (both 65W TDP variants and not including Turbo) and AMD's estimates pointed to a ~20-30% increase in PCmark Vantage, which roughly equated to the increase in clock speed from Llano to Trinity. In short, if we're to assume these xbit graphs and AMD performance estimates are accurate, we'd be looking at Trinity equaling Llano's IPC and that performance improvement would be a direct result of higher clock speeds. That's a good sign even though I just stated it's a bad sign (!) and in essence should have been what Bulldozer brought to the table because this was the initial plan for Bulldozer from the get-go, but it also paints a poor picture going forward because they'll HAVE to change their approach from clock speeds to IPC increases due to their slow progression and limitations on the fab front. It looks as if they took the easy road and just bumped up clock speeds with a minor IPC increase to overcome Bulldozer's initial shortcomings. It looks as if it's a step in the right direction for the short term, but long term they'll require a complete overhaul in approach.

The good sign (better sign, imo) would be a leveling off of clock speeds on a smaller node (not happening until 2013 at the earliest) and a decrease in TDP on CPUs rather than APUs. It's a bit more difficult to judge the APUs because of how strong AMD's graphical performance is and just how it would affect the entire chip. There's also the issue of whether we'll even see any more AMD CPUs for the desktop after Vishera. According to their slides on FA day they're planning to replace them all with APUs going forward.

adding even more to this :p
http://www.ilsistemista.net/index.p...omparison-whats-wrong-with-amd-bulldozer.html
Not very good grammar (seems to be foreign), but the dude does a good job of gathering info from many sources and puts it together really well.

Thanks for the comments. I don't have the slightest understanding of chip architecture and how everything works together, (I personally am only running on a single core and that would be reptilian), but even I am able to follow your post and somewhat comprehend.
 
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Olikan

Platinum Member
Sep 23, 2011
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the funny part, is that amd had a good profit in the last 2 years, even with faildozer...amd profits is just near to the days of the athlon 64

AMDChart1.gif
 

blckgrffn

Diamond Member
May 1, 2003
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www.teamjuchems.com
the funny part, is that amd had a good profit in the last 2 years, even with faildozer...amd profits is just near to the days of the athlon 64

AMDChart1.gif

Haha, hard to tell from that graph. We need to take Intel out and zoom on ~-500M to 2B instead :)

Thanks for the graph though, interesting...
 

pelov

Diamond Member
Dec 6, 2011
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And most of that coming from APUs/CPUs and embedded devices.

AMD-GPURev.png


They barely make any money off their best products, discrete GPUs.
 

blckgrffn

Diamond Member
May 1, 2003
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And most of that coming from APUs/CPUs and embedded devices.

AMD-GPURev.png


They barely make any money off their best products, discrete GPUs.

Well, to be fair they are taking GPU R&D and charging that all to their graphics business while leveraging the crap out of it in their APUs so that is probably a bit misleading...
 

pelov

Diamond Member
Dec 6, 2011
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Well, to be fair they are taking GPU R&D and charging that all to their graphics business while leveraging the crap out of it in their APUs so that is probably a bit misleading...

Yea, that's true. They had over 30million APUs shipped, and any R&D spent in GPUs had a spillover effect in advancements toward their APU division.

I highly doubt we'll be seeing any significant price decreases on the new GPUs from either nVidia or AMD. If Kepler comes out swinging I think it'll be priced close to already existing GCN products. Maybe something slight, but certainly not any time soon and likely not this year. It's no wonder that Rory Read seems so adamant on pushing APUs so heavily when you take a look at that graph.
 

Makaveli

Diamond Member
Feb 8, 2002
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From a business perspective Intel is a much smarter company. Sure AMD will sell you a quad core CPU for $100 and make virtually nothing on it, Intel will just say go ahead you can have that market segment... if we can't put out a CPU at that price point with the margins we want we won't put it out.

Good point but I also believe intel doesn't have a choice. They have to keep their margins high and to please their shareholders.

I always find it funny when people starting say "AMD is done now we are gonna see $1000+ cpu's from intel again"

ummm no that is now how the market works. Without continual innovation and sales those profits will start to drop and you can bet they are far more worried about that and the shareholders than what AMD is or isn't doing.

O i'm not referring to you on my last point just a general statement.
 
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Idontcare

Elite Member
Oct 10, 1999
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Good point but I also believe intel doesn't have a choice. They have to keep their margins high and to please their shareholders.

I always find it funny when people starting say "O know amd is done now we are gonna see $1000+ cpu's from intel again"

ummm no that is now how the market works. Without continual innovation and sales those profits will start to drop and you can bet they are far more worried about that and the shareholders than what AMD is or isn't doing.

I think the point that folks are more trying to make when they say those things is not that it is a forgone conclusion that Intel will pursue the logical path and continue making newer products with reasonable prices so as to maintain the upgrade cycle; but, rather that they will be in a position where all it takes is one bad CEO or a handful of dullards on the BoD and they could easily be making all the wrong decision for all the wrong reasons and screw the consumer space all the same.

We like our benevolent dictators when they are truly benevolent (or wise enough to limit their greed to economically sustainable business policies), but every now and then you get a Nero in there and things just go to feces.

If Intel can convince me that they've got nothing but a long succession of Grove and Otellini clones lined up for CEO positions over the next 5 decades then I'm good. But I worry about the rotten apple that inevitably gets promoted to CEO. The Carly Fiorina, the Hector Ruiz, the John Sculley.

Those fools would take an Intel and do exactly the worst case nightmare scenario, and that is what makes me and others concerned.
 

Makaveli

Diamond Member
Feb 8, 2002
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I think the point that folks are more trying to make when they say those things is not that it is a forgone conclusion that Intel will pursue the logical path and continue making newer products with reasonable prices so as to maintain the upgrade cycle; but, rather that they will be in a position where all it takes is one bad CEO or a handful of dullards on the BoD and they could easily be making all the wrong decision for all the wrong reasons and screw the consumer space all the same.

We like our benevolent dictators when they are truly benevolent (or wise enough to limit their greed to economically sustainable business policies), but every now and then you get a Nero in there and things just go to feces.

If Intel can convince me that they've got nothing but a long succession of Grove and Otellini clones lined up for CEO positions over the next 5 decades then I'm good. But I worry about the rotten apple that inevitably gets promoted to CEO. The Carly Fiorina, the Hector Ruiz, the John Sculley.

Those fools would take an Intel and do exactly the worst case nightmare scenario, and that is what makes me and others concerned.

I wasn't looking at it from that point of view. Thanks for the post I totally agree with what you wrote. I think they have been doing few well with the choices they have made as ceo but I guess you never know as you pointed out. Look what happened to HP lol.
 

blckgrffn

Diamond Member
May 1, 2003
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I think the point that folks are more trying to make when they say those things is not that it is a forgone conclusion that Intel will pursue the logical path and continue making newer products with reasonable prices so as to maintain the upgrade cycle; but, rather that they will be in a position where all it takes is one bad CEO or a handful of dullards on the BoD and they could easily be making all the wrong decision for all the wrong reasons and screw the consumer space all the same.

We like our benevolent dictators when they are truly benevolent (or wise enough to limit their greed to economically sustainable business policies), but every now and then you get a Nero in there and things just go to feces.

If Intel can convince me that they've got nothing but a long succession of Grove and Otellini clones lined up for CEO positions over the next 5 decades then I'm good. But I worry about the rotten apple that inevitably gets promoted to CEO. The Carly Fiorina, the Hector Ruiz, the John Sculley.

Those fools would take an Intel and do exactly the worst case nightmare scenario, and that is what makes me and others concerned.

One can only imagine the type of quarterly earnings Intel could have for a short period of time... and how alluring that might be for some people. Putting them in full on monopoly mode would be like handing them the One Ring for safekeeping.

Well said.
 

exar333

Diamond Member
Feb 7, 2004
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the funny part, is that amd had a good profit in the last 2 years, even with faildozer...amd profits is just near to the days of the athlon 64

AMDChart1.gif

I take it you are not in the business world? 'Good profit' is a flat-line barely above the 0-point? I see miniscuile profit growth there, and between 2005 and 2009 you can see the profits go significantly negative. Factor-in a $5B purcahse of ATI on your graph as well, and it looks even more gloomy.

A profit is great (better than losing money) but the future will continue to be challenging for AMD. Their GPU revenue has dropped recently, and they will need to make that up in their APU line. Are the margins as good there? What APU volume do they need to make up the difference? Can they supply enough APUs to the market?

Some great opportunities have passed them, such as supplying Apple with Llano for the Macbook Air. Supply issues still plague AMD, and that will continue to hamper their revenue growth and profits.

I am sure there are great people at AMD working on these issues, and hopefully their financials continue to improve. I would classify their current situation more as 'treading water' financially. They are doing better (OK) but definitely need to become more profitable if they want to stay around.
 

Olikan

Platinum Member
Sep 23, 2011
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I take it you are not in the business world? 'Good profit' is a flat-line barely above the 0-point? I see miniscuile profit growth there, and between 2005 and 2009 you can see the profits go significantly negative. Factor-in a $5B purcahse of ATI on your graph as well, and it looks even more gloomy.

A profit is great (better than losing money) but the future will continue to be challenging for AMD. Their GPU revenue has dropped recently, and they will need to make that up in their APU line. Are the margins as good there? What APU volume do they need to make up the difference? Can they supply enough APUs to the market?

yes, yes... it's not a "good" profit... but the thread is about: "AMD : What happened?" ppl still think that athlon xp/64 days gave a shit ton of profit to amd, just not true...

IMO, the APUs have a way better margin than gpus, you don't have pcb, gddr5, display ports and many other stuffs.... against, just a single chip

yet it hurts nvidia and intel, with the same stone
 

cebalrai

Senior member
May 18, 2011
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What happened was that AMD competed with a company with six times their resources. Was there any other possible outcome?
 

blckgrffn

Diamond Member
May 1, 2003
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I take it you are not in the business world? 'Good profit' is a flat-line barely above the 0-point? I see miniscuile profit growth there, and between 2005 and 2009 you can see the profits go significantly negative. Factor-in a $5B purcahse of ATI on your graph as well, and it looks even more gloomy.

A profit is great (better than losing money) but the future will continue to be challenging for AMD. Their GPU revenue has dropped recently, and they will need to make that up in their APU line. Are the margins as good there? What APU volume do they need to make up the difference? Can they supply enough APUs to the market?

Some great opportunities have passed them, such as supplying Apple with Llano for the Macbook Air. Supply issues still plague AMD, and that will continue to hamper their revenue growth and profits.

I am sure there are great people at AMD working on these issues, and hopefully their financials continue to improve. I would classify their current situation more as 'treading water' financially. They are doing better (OK) but definitely need to become more profitable if they want to stay around.

Being the black is all that is needed, IMHO, *as long as they are healthily funding their R&D organization.* Just ask Monsanto whether it is good to have monster profits or a solid business built for the long haul. Cliff Notes: They had a CEO who mandated a % of revenue for R&D. They were zooming a along, Round Up was good for them, then the board realized how much money they could be making instead of reinvesting. CEO gets ousted, R&D spending is slashed, profits go way up, and as patents expire on Round Up, etc. they are sitting in a horrible situation. Big profits don't definitively point out "good" (ie, stable) companies.

Having these big corps banking all sorts of cash isn't the greatest thing in the world.
 

alent1234

Diamond Member
Dec 15, 2002
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except that Intel is spending huge amounts on R&D and lots of money on new tech for it's factories every year.

on macrumors there is a guy posting in the forums who used to work for AMD. helped design the athlons back in the day. he's a patent lawyer now.

he said sometime in the middle of the last decade the main designer left or was replaced. and instead of manually engineering everything circuit by circuit they bought some automated software that put 20% overhead on the number of transistors
 

exar333

Diamond Member
Feb 7, 2004
8,518
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except that Intel is spending huge amounts on R&D and lots of money on new tech for it's factories every year.

on macrumors there is a guy posting in the forums who used to work for AMD. helped design the athlons back in the day. he's a patent lawyer now.

he said sometime in the middle of the last decade the main designer left or was replaced. and instead of manually engineering everything circuit by circuit they bought some automated software that put 20% overhead on the number of transistors

Wasn't this essentially debunked a while back? It is my understanding that every company uses automated software for design, to some degree. This seemed more like a 'sour grapes' ex-employee's comments.
 

exar333

Diamond Member
Feb 7, 2004
8,518
8
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Being the black is all that is needed, IMHO, *as long as they are healthily funding their R&D organization.* Just ask Monsanto whether it is good to have monster profits or a solid business built for the long haul. Cliff Notes: They had a CEO who mandated a % of revenue for R&D. They were zooming a along, Round Up was good for them, then the board realized how much money they could be making instead of reinvesting. CEO gets ousted, R&D spending is slashed, profits go way up, and as patents expire on Round Up, etc. they are sitting in a horrible situation. Big profits don't definitively point out "good" (ie, stable) companies.

Having these big corps banking all sorts of cash isn't the greatest thing in the world.

To stay in the black, they had to sell most of their hard assets (foundaries) to do so. Thats a big cost, and gives them less leverage for restructuring down the road, as well ass increases their gross costs for products because they now have to pay a mark-up. Some would argue that this would be better than a poorly-run self-foundried product, but thats another debate. They have less assets now, less production design control, and they reaped nothing positive from it, just potentially reduced the downside. It was a big cost.
 
Aug 11, 2008
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What happened was that AMD competed with a company with six times their resources. Was there any other possible outcome?

It can happen, look at Apple. At one time they were nearly out of business but now are making money hand and foot. I dont particularly like their products, business practices, and they are grossly overpriced. But they did turn things around. Not saying it can happen often, but it did happen.

I guess what I am saying is that I sympathize with AMD to an extent because of the lower amount of resources they have relative to intel, but they have made some bad decisons and executed poorly as well, and cant blame that on a lack of R and D.
 

Idontcare

Elite Member
Oct 10, 1999
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What happened was that AMD competed with a company with six times their resources. Was there any other possible outcome?

True...but...there was a time when Intel was the one that was dwarfed 6:1 by entrenched incumbents in the business machine industry and they managed to deftly outmaneuver them.

If we look to the history of business in just about every industry and segment what we see is a fairly cyclical rise and fall of industry titans who started out as a feeble upstart pushing against well monied competitors, they rise by out-innovating and out-competing, then they get bloated and begin to rest on their laurels, and the cycle repeats.

What is unique about Intel is merely the moment in time at which we are assessing their trajectory on that arc.

True there are many more examples of business that basically failed to blossom, in a lot of ways AMD is a prime example of a business that exhibited stunted growth at every turn in the cycle.

Few companies manage to reinvent themselves frequently enough to stay relevant though, despite being industry titans. See Eastman Kodak, or DEC.

I am convinced that Intel owns the CMOS industry up to the point that silicon xtors cease to scale.

But look around in this industry and what you won't see is leaders of CMOS who were also leaders of vacuum tubes. You could kinda say IBM is like that but not really, they are a software and services company first, hardware is a distant third.

They survived the transition by reinventing themselves and ceasing to exist as a hardware leader in the exact ways that DEC and Cray failed.

I will be extremely surprised if Intel is still the defacto technology and hardware leader in the computing industry 50yrs from now. History is against them every bit as much as it is against all of us.

I haven't died yet, but past results are not indicative of future results. In fact there is one future result that I can count on, I will not see the year 2100, and history strongly implies that neither will Intel.

In a poorly constructed Heisenberg uncertainty principle analogy, neither Intel nor I know how we will end up in that end-state, the journey itself is unknown, but the destination is definite and unavoidable ;)
 

Lepton87

Platinum Member
Jul 28, 2009
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I haven't died yet, but past results are not indicative of future results. In fact there is one future result that I can count on, I will not see the year 2100, and history strongly implies that neither will Intel.

In a poorly constructed Heisenberg uncertainty principle analogy, neither Intel nor I know how we will end up in that end-state, the journey itself is unknown, but the destination is definite and unavoidable ;)

There's also a chance that they will still hang around 90 years from now, there's lots of companies over a 100 years old. Maybe they won't be the leaders but they might find their niche.
 

Makaveli

Diamond Member
Feb 8, 2002
4,976
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True...but...there was a time when Intel was the one that was dwarfed 6:1 by entrenched incumbents in the business machine industry and they managed to deftly outmaneuver them.

If we look to the history of business in just about every industry and segment what we see is a fairly cyclical rise and fall of industry titans who started out as a feeble upstart pushing against well monied competitors, they rise by out-innovating and out-competing, then they get bloated and begin to rest on their laurels, and the cycle repeats.

What is unique about Intel is merely the moment in time at which we are assessing their trajectory on that arc.

True there are many more examples of business that basically failed to blossom, in a lot of ways AMD is a prime example of a business that exhibited stunted growth at every turn in the cycle.

Few companies manage to reinvent themselves frequently enough to stay relevant though, despite being industry titans. See Eastman Kodak, or DEC.

I am convinced that Intel owns the CMOS industry up to the point that silicon xtors cease to scale.

But look around in this industry and what you won't see is leaders of CMOS who were also leaders of vacuum tubes. You could kinda say IBM is like that but not really, they are a software and services company first, hardware is a distant third.

They survived the transition by reinventing themselves and ceasing to exist as a hardware leader in the exact ways that DEC and Cray failed.

I will be extremely surprised if Intel is still the defacto technology and hardware leader in the computing industry 50yrs from now. History is against them every bit as much as it is against all of us.

I haven't died yet, but past results are not indicative of future results. In fact there is one future result that I can count on, I will not see the year 2100, and history strongly implies that neither will Intel.

In a poorly constructed Heisenberg uncertainty principle analogy, neither Intel nor I know how we will end up in that end-state, the journey itself is unknown, but the destination is definite and unavoidable ;)

Another excellent post IDC.

Intel is on top so the only where to go is down the question is how long and when that will happen. And AMD if they can stay alive can only go up cause they are pretty much at the bottom of the barrel currently.

I would love to see where this goes 50 years from now.
 

386DX

Member
Feb 11, 2010
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yes, yes... it's not a "good" profit... but the thread is about: "AMD : What happened?" ppl still think that athlon xp/64 days gave a shit ton of profit to amd, just not true...

IMO, the APUs have a way better margin than gpus, you don't have pcb, gddr5, display ports and many other stuffs.... against, just a single chip

yet it hurts nvidia and intel, with the same stone

You can't look at the "profit" graph and conclude that AMD is doing better now then back in the Athlon XP/64 days. You have to remember the overall market has grown so profits should be higher. Also AMD had cut alot of there workers, infrastructure (foundries), costs. Not to mention if you notice AMD was losing a lot of money until 2009. Did they magically started selling more Chips? Nope that was the year Intel gave them 1.2 billion from the settlement. If you remove that factor AMD would of lost almost a billion that year. 2010 and 2011 is also similar as they spun off (sold) there foundries to reduce expenses and generate some income.

You are mixing "margins" with profit. Back in the Athlon XP/64 days AMD had decent margins on there chip, even though there costs were high (foundries) they were still able to turn a profit. Today AMD has low margins on there chips, but they aren't losing money keeping there foundries running, plus most of there margins is coming from GPU's now. Even though they've turn a small profit the last two years, its not from there CPU division. They gave up alot (imo too much) to get to where they are at, they've become another fabless chip company.

I bet if AMD could re-write history they wouldn't of started the price war, since it's hurt them more then Intel. Intel still has there $1000 part, $600 part, $300 part, while AMD has been forced to the $260 part, $200 part, and every part from $35 to $140 in $5 increments.

I disagree with you that APU's have better margins. The costs of PCB, RAM, etc doesn't affect AMD since they don't make the video cards they just provide the chip its upto the manufacturer to add those on. I bet if AMD had a choice they'd rather someone pickup an AMD CPU + a video card instead of an APU. Since the video card market is owned by AMD and Nvidia, there's a 50/50 chance they'll make money off the video card. The only reason they have to sell APU's now is because there is no reason to buy an AMD CPU now over an Intel one. Throwing a better performing GPU part in there CPU (calling it an APU) gives at least a little bit of reason in buying an AMD part.