Originally posted by: RussianSensation
Originally posted by: Wreckage
Originally posted by: nismotigerwvu
To me it seems like the comparison is going to be more 5890 or 6870 versus GT300. Evergreen will more than likely have a refresh or binned part by the time we see gt300 in volume. No links, no evidence just gut feeling based on availabilities.
This may explain why they are losing money. NVIDIA makes an architecture well enough to last more than a few months so that they can recoup the cost. AMD has to kill of it's architectures after a rather short time. I bet that can get expensive.
Over 70% of AMD's revenue is CPU related. Has it ever dawned on you that it is AMD's cpu division that is struggling to make the company profitable? Why do you constantly jump to conclusions that it is AMD graphics that is bringing the firm down?
You are failing to realize that AMD graphics was profitable before the takeover. Yes they completely flopped 2900 series, but after that things went ok for them. Making blank statements that AMD Graphics Division has not been making profit (implying after the takeover until now based on your statements), is just incorrect. The reason AMD is struggling is largely as a result of the enormous interest expense obligation related to its debt from the buyout, lack of competitiveness on the CPU mobile space, and reduced CPU margins due to uncompetitiveness with Intel. Your logic implies that AMD Graphics has negative gross margins due to increased cost of sales...(i.e. manufacturing costs included).
GAAP gross margin (complete AMD):
AMD: Q1 43% - Q2 37%
nVidia: Q1 29% - Q2 20%