X-bit labs

The Strong Dedication to the Quality: Interview with John Byrne of AMD Graphics Product Group (page 4)

Category: Editorial

by Anton Shilov

[ 03/24/2007 | 04:18 PM ]

AMD’s GPU Business

X-bit labs: What are your primary goals for the channel GPU business?

John Byrne: Our goal is always to improve our business. Despite nVidia introducing their GeForce 8800 products toward the end of last year, ATI managed to gain market share. This is largely because we have improved our range across the board and our major customers like the fact that we deliver a solid, updated, WHQL-certified driver each and every month of the year. The major OEM/ODM companies demand stability and quality – both of which we are able to deliver in ample supply. Meeting the customer’s needs directly impacts our ability to achieve our goals. In addition, I want to ensure that our Add-In-Board partners have a Profitable Business when selling our products.

In the fourth quarter of 2006 Nvidia introduced its GeForce 8800 graphics processors compatible with DirectX 10 and offering performance that is tremendously higher compared to previous-gen solutions from ATI and Nvidia. But despite of this, Nvidia’s market share went down in the Q4, which denies widespread opinion that customers look at the high-end and then buy more affordable solutions.

X-bit labs: Can you discuss what drove the sales of AMD’s GPUs up in the Q4 and what generally drives sales of add-in graphics cards?

John Byrne: There are a large number of factors, but you can never discount driver stability – especially when a new operating system is introduced. Our engineers worked very closely with Microsoft on the development of the new driver model and so we were well placed to take advantage of the new launch. The same was true for PCI-Express.  Traditionally, ATI have exceeded expectation at key inflection points.

X-bit labs: Shipments of both desktop and mobile GPUs have been either stagnating or declining in the most recent quarters. Do you have any marketing and/or co/marketing plans to improve their shipments?

John Byrne: We have a number of new initiatives coming through that will drive sales in all segments of the market. However, you cannot escape the fact that more and more products are being sold with integrated graphics. When ATI launched the Radeon Xpress 200 at CeBIT 2005, we became the only company in the world to have integrated DirectX 9 graphics available for both AMD and Intel platforms – for desktop and mobile products. That is an amazing ‘first’ and it shows just how strategic our view of the market was. AMD’s Fusion program will continue this leadership into the future.

X-bit labs: Can you talk about perception of standalone graphics cards in different markets and regions? Which countries consume more high-end and which are all about entry-level products?

John Byrne: One of our guiding mottos has always been ‘Think Global – Act Local’. Every country needs to be approached with care and buying patterns can change everytime you step over a border. Larger countries can even show strong buying pattern differences by region – China, Russia and India are good examples of this. Globally, EMEA Channel can account for more than 55% of World-Wide add in card sales.

X-bit labs: Do you think that the recent trends for merging between large hardware producers is a benefit or a threat for AMD’s GPU business? What’s the difference between working with a large company like Asustek Computer and smaller players like Tul Corp., for example?

John Byrne: At a fundamental level, all of our partners have the same core requirements. Namely, that we deliver ample supply of the highest quality products at competitive prices. From there, our AIBs will innovate and differentiate through a variety of mans, including cooling solution, memory configuration, bundled software, packaging, channel and warranty. As with all customers, we adapt to meet their diverse needs.

X-bit labs: Do you think platformization of computing platform is positive or negative for GPU business in general and AMD’s GPU business in particular?

John Byrne: It seems to be the natural way to go. Whilst it is always good for customers to have choice, part of our own development and improvement programme is that we also innovate within our own product ranges. Sometimes that means we create new interoperability that gives an advantage to the consumer. To have that innovation, a customer would need the entire platform. Ultimately, whether the market moves more toward platformisation or not will depend on customer demand – which is the best way forward.