AMD will die within five years

[Ice9]

I would hope their operating costs are lower. They're a much smaller company than Intel. I'm not neglecting that fact, it goes without saying.

But even with Intel's operating costs, they're still hugely profitable. It's all about the COST of becoming profitable. When companies state "we had $5M in revenue this quarter", you also have to understand how much it COST to generate that revenue. If R&D cost you $10M, then that $5M was very costly revenue indeed.

Hector announced that his goal is to cut costs by $100M per quarter, to a cost of $800M by the end of Q2.

That's still more than they make. It's not enough. It's a good START, but it's still NOT enough.

Also, forming lucrative partnerships is important to ANY semiconductor business... but it's the KIND of company you keep that keeps you in business. Intel has the strategic partnerships it needs to make oodles of cash. They aren't about to let AMD crash their party.

I remember when Gateway dumped AMD. People screamed and shouted about how "Intel got to 'em". Well, as unfair as it sounds, they're *right*. But that's business.

 

[AtomicDude512]

AMD rocks! My XP 1700 at 1.4Ghz benches as fast as a 2GHs P4 Willamette. I am impressed.

 

[DAPUNISHER]

That's still more than they make. It's not enough. It's a good START, but it's still NOT enough.

That comment borders on obtuse, no offense intended, it's meant as an observation, the reason I assert that is that you state it's not enough after I just clearly demonstrated they're gaining footholds in other sectors of technology with vast opportunities for expansion. You have the perogative to remain a cynic but I do not share your misgivings and your arguments fail to convince me of AMD's imminent demise. To reiterate, only in the fullness of time will the fate of AMD be decided and your analysis is as valid as anyone else's, especially mine but no more so despite any protestation you make to the contrary.

 

[Ice9]

That comment borders on obtuse, no offense intended, it's meant as an observation, the reason I assert that is that you state it's not enough after I just clearly demonstrated they're gaining footholds in other sectors of technology with vast opportunities for expansion.

Cutting costs doesn't mean "expansion" That means "Obviously, it's high time we stopped bleeding money."

You have the perogative to remain a cynic but I do not share your misgivings and your arguments fail to convince me of AMD's imminent demise.

If you look at the facts, it sure looks bad!

To reiterate, only in the fullness of time will the fate of AMD be decided and your analysis is as valid as anyone else's, especially mine but no more so despite any protestation you make to the contrary.

Holy run-on sentence, Batman!

 

[DAPUNISHER]

Cutting costs doesn't mean "expansion" That means "Obviously, it's high time we stopped bleeding money."

LOL, now you are being obtuse! I was referring to the article I linked about AMD Buying Alchemy when I spoke of expansion\diversification BTW, I'm not Batman, I'm the Punisher and you are obviously a grammar Nazi

 

[Ice9]

LOL, now you are being obtuse! I was referring to the article I linked about AMD Buying Alchemy when I spoke of expansion\diversification

Ahh, sorry. I misunderstood. Either way, the last thing AMD should be focusing on now is expanding They don't have the money.

BTW, I'm not Batman, I'm the Punisher and you are obviously a grammar Nazi

Hehe sorry again, I just couldn't resist that time. Believe me, my grammar is far from perfect.