George said:
AMD's approach recently has been to target collaboration and sponsorship
with high tech activities, mostly in some form of sports. I wonder how
this is panning out: e.g. has the Lance Armstrong/Discovery Team connection
been worth anything to them? How about the Sauber & Ferrari F1 connection?
I don't watch NASCAR but that might be a more worthwhile avenue for their
collaboration/sponsorship efforts in the U.S. market??
For AMD, its a step in the right direction, but I dont think they
should spend too much of their energy (and money) at this stage to make
it a brand name. (As Tony has mentioned above, to an average consumer,
it doesnt matter whats inside the computer. They buy Dell or HP or ...)
They should concentrate on getting market share while making money. I
think Hector Ruiz is doing a good job at it. He may not have gained any
market share as yet, but he sure has realized that he cannot gain it by
reducing the price 25% below Intels's, as Jerry tried to do. Intel
wants them to be around 15% market share irresepctive of the price.
Intel desperately wants AMD to be around, as they dont want to be
labelled a monopoly. Hector has realized these facts and if you have
noticed, the average price of the lower end chips (money losing) has
gone up over the last few years. Intel has been very shrewd in their
pricing strategy. They want AMD at 15%, but dont want them to make any
money, which can be used to stage a comeback anytime. Every dollar of
the cpu price is set to make sure that in the equation , AMD's
profitability is just around 0. And what cannot be done with price, it
is done with strong-arming OEMs. (I really dont want to start another
argument here
Regards,
Pankaj