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Advanced Micro Devices claims that the traditional view on the market of microprocessors as onto competition between Intel Corp. and AMD is now outdated. There are strategic inflection points both for the market in general and AMD in particular. But while addressing new challenges is important, there are traditional things that need to be done right.

"We are at an inflection point. We will all need to let go of the old 'AMD versus Intel' mind-set, because it won't be about that anymore," said Michael Silverman, a corporate spokesperson for AMD in an interview with San Jose Mercury News.

New Technologies Change Competitive Landscape

It is not a secret that there are several global revolutions happening in the computer world nowadays. For the microprocessor industry the most important industrial phenomenon today are GPGPU (general purpose computing on graphics processing units) technologies as well as ARM-architecture microprocessors that power ultra-portable devices which deliver great user experience at low power consumption. GPGPU allow to accelerate certain consumer programs or even power high-performance computing (HPC) applications thus reducing demand towards traditional x86 processing power. ARM chips power the most popular and the most personal devices nowadays - smartphones, tablets, etc. But ARM or its partners do not place stickers with their names, number of cores and clock-speeds onto those products. Few people know what is inside their personal devices; therefore, the importance of microprocessor brand or horsepower is going down for the end user.

"The competitive landscape has changed over the past few years. [...] There are more players in the microprocessor market than there were, say, five years ago," said Mr. Silverman in an interview with X-bit labs.

Five years ago only two companies - AMD and Intel - offered competitive x86 chips that could deliver enough horsepower for demanding consumer programs or HPC applications. Nowadays the situation is different: many apps take advantage of GPUs by default and many consumers know that they need proper contemporary AMD Radeon or Nvidia GeForce GPUs to have blazing speeds. Today, supercomputer owners are not afraid of GPU-based accelerators and significant amount of top-performing systems in the world use GPUs. As a result, today there are three companies fighting for the HPC market and for end users' dollars: AMD, Intel and Nvidia.

Nowadays, media tablets powered by ARM system-on-chips from different companies are stealing sales from PCs and therefore from AMD and Intel. With the arrival of Windows 8 next year, ARM partners will be able to compete directly against AMD and Intel on the notebook and slate-type PC markets. Therefore, the competition will expand again, there will be AMD, Intel, Nvidia, Samsung, Qualcomm, Texas Instruments and many others. But since customers do not care what is exactly inside tablets, the value of Intel and AMD brands will get much lower and horsepower of their chips will no longer be the most important factor.

New All-Out War on Chip Market Incoming

Does this mean that AMD and Intel are no longer direct rivals? No. It means that there are more rivals for Intel and AMD on the market and the two companies will pin less attention on each other in a bid to stay competitive globally. The competition between AMD and Intel was all about performance and volumes. While the importance of performance benchmarks for end-users may get lower, PC makers will continue to thoroughly evaluate chips in order to enable the best possible user experience on their devices. As a result, there will still be fight for the highest speed amid lowest power consumption between AMD, Intel and tens of other players.

"Any time a company is more focused on its competitor than what the market wants and needs it is probably not in a good place for long-term growth. Our CEO Rory Read is driving a shift internally to think beyond the typical and outdated AMD/Intel mindset. At the end of the day, we aren't focused on keeping pace with Intel, we are focused on keeping pace with consumers and the market. That is how we are going to win," said Mr. Silverman.

The new era of always-connected Internet devices has quietly brought a number of strategic inflection points for various industries. For computer chip designers it means a new all-out war where only the strongest will survive.

Tags: AMD, Intel, x86, ARM, Business

Discussion

Comments currently: 31
Discussion started: 12/01/11 05:47:05 PM
Latest comment: 12/08/11 01:42:12 PM
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[1-12]

1. 
we aren't focused on keeping pace with Intel, we are focused on keeping pace with consumers and the market. That is how we are going to win
Pure and stupied marketings slogan. None is able to win w/o competitive products, first. And second, none can win if he/she just follows market rules set by somebody else.
2 3 [Posted by: Azazel  | Date: 12/01/11 08:13:00 PM]
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Exactly. It just sounds like AMD is giving up.
3 2 [Posted by: qd50  | Date: 12/02/11 06:15:10 AM]
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2. 
AMD's problem is they always just look forward and miss the Present. Hope they learn from past.and hey...Thanks Anton
waiting for more news about AMD!
3 1 [Posted by: Pouria  | Date: 12/02/11 03:42:32 AM]
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Well, this is not their strategy statement. This is just a clarification of a fraction of AMD's overall vision.
3 0 [Posted by: Anton  | Date: 12/02/11 09:29:23 AM]
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Doesn't the full announcement of their Project Win strategy come next February?
0 0 [Posted by: GavinT  | Date: 12/02/11 12:31:12 PM]
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Yeah, Sure it is not ALWAYS but how about saying OFTEN! by the way I hope somebody from AMD sees these kinda comments . How could we tell them our - perhaps stupid - suggestions I mean; like the lower half part of AMD's website that seems have not changed for like Centuries !!
And thanks again.
0 1 [Posted by: Pouria  | Date: 12/02/11 01:27:26 PM]
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3. 
the x86 seems to be dead

wish a new open architecture comes out
2 1 [Posted by: madooo12  | Date: 12/02/11 06:20:03 AM]
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4. 
Why wait for Windows 8 next year? Android/Linux, Chromium/Linux, and KDE+(Linux) are here... right now. Today. Not sometime in the future. Why wait for a company that cannot, and has not, delivered on anything it's ever promised? Why wait on one of the worst user-interfaces ever developed (Metro)?

Seriously. Why are so many people hung up on "Windows 8" as somehow being the "tablet savior" ???? The mobile market took off because Microsoft was -NOT- involved. ARM doesn't need Microsoft. AMD doesn't need Microsoft. Intel doesn't need Microsoft. Samsung doesn't need Microsoft. Google doesn't need Microsoft. Apple doesn't need Microsoft. HTC doesn't need Microsoft. HP doesn't need Microsoft. Nobody -needs- Microsoft and I think it's time the rest of the tech-press caught onto the fact that it's time to call a pile of manure for what a pile of manure is.

Windows 8, no matter how good it can be, if it launches on time, is going to be years behind IOS and Android systems in terms of market penetration. Oh and one other matter. Microsoft's talking quad-core ARM for 2012. Google and Apple are already talking Oct-Core arm designs. Microsoft's talking single-GPU usage. Google and Apple are talking multi--core-gpu configurations and transparent processor switching. Hell, ARM's already demonstrating transparent processor switching... RIGHT NOW.

Seriously, get over this infatuation with Microsoft. They don't matter, and they will not matter.
2 1 [Posted by: Saist  | Date: 12/02/11 10:11:04 AM]
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Parts of your words are right but who thinks about Linux when he/she plans to make a Gaming system then? there are lots of guys out there making PCs for just Gaming or heavy Video Editing by Windows-Based softwares.
1 1 [Posted by: Pouria  | Date: 12/02/11 01:35:05 PM]
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5. 
This article is a load of hogwash.
The purpose of buying a CPU is for increased performance.
The article states this is no longer true; what bullshit.
In fact, this is why I will buy an Intel CPU, because the 32nm AMD isn't much faster than its predecessor.

Fail to get back up AMD, and you will be crushed; at least on the CPU segment; for graphics you guys are doing great. The goal should be a True bulldozer; sell us your junk for now but work on the big bang.
2 1 [Posted by: ericore  | Date: 12/02/11 05:17:50 PM]
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6. 
As I have stated several times in this forum, AMD will continue to supply the products that MAINSTREAM consumers desire because they comprise 90% of the market where as maximum speed CPUs comprise less than 5% of the market.

There is no change in AMD's strategy that has existed for at least the past three years. OEMs love AMD products because they deliver excellent performance and value. AMD will continue to deliver these types of products but to an even broader market.
2 4 [Posted by: beenthere  | Date: 12/02/11 05:44:35 PM]
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7. 
Really leave AMD alone , write more about the Intel )
1 3 [Posted by: Blackcode  | Date: 12/03/11 01:08:48 AM]
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8. 
Can you afford for AMD to quit? Watch as the cost of "Intel inside" increases.
2 0 [Posted by: bbo320  | Date: 12/03/11 02:45:34 AM]
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9. 
"We are at an inflection point. We will all need to let go of the old 'AMD versus Intel' mind-set, because it won't be about that anymore,"



That's because the war has been fought, and Intel is the winner.

Dear AMD i really cannot see what card you have up your sleeve, you have no control over the fabrication process, you don't have a single team that can say "I made this architecture", at this point in time you have worn off every fortune left by the people you had dumped many years ago, you don't even have a top tier brand anymore to be proud of.
0 1 [Posted by: Marburg U  | Date: 12/03/11 07:39:47 AM]
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actually there apus are better balanced than intels . and the top brand of amd are there graphics cards.
2 1 [Posted by: massau  | Date: 12/03/11 09:46:35 AM]
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10. 
Instead of reading: "We are at an inflection point. We will all need to let go of the old 'AMD versus Intel' mind-set, because it won't be about that anymore,"

It should be: "We are at an end. We will all need to let go of the old 'AMD versus Intel' mind-set, because we have been soundly beaten and no longer will try to compete"

However, it does sadden me, as I loved AMD as the underdog that USED to be able to hand Intel their @$$e$$. I put off building a new rig to replace my old AMD X4 system, only to find that fail-dozer would be a sorry replacement.
4 2 [Posted by: 460cidpower  | Date: 12/03/11 11:34:17 AM]
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11. 
I like that the CPU space is getting pretty competitive, I don't care about the architecture of the CPU, I just want it to do the job efficiently.

I hope AMD and Intel will face a strong competition from the upcoming ARM based solutions for the following years, this will drive prices and power consumption down and computing power up!
4 0 [Posted by: nitro912gr  | Date: 12/04/11 05:24:36 AM]
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12. 
JMLXQ - dude you seem pretty happy that AMD is in difficulty, how can you be happy about someone's problems? We all know already that you are ''married'' with Intel, but MAN all you comments are so full of hate towards AMD and we don't understand why? Did AMD fired you, robbed you, stolen your girlfriend or what? This is just tech talk, no need to be SO obsessed about it!!! Just go outside to a club, have a shoot, a beer, a girl and pump her ass real good and you'll be fine.
1 3 [Posted by: 63jax  | Date: 12/04/11 10:57:04 PM]
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You are so right, but this is the internet

I was disappointed from bulldozer myself, but the CPU is not a fail, it is just way lower than what we expected (or maybe to say, they made us to expect?).

I see all those intel fans to spread hate all around, and I wonder what exactly do they have to win from an intel monopoly?

I can't see any gain from that, as I said I don't care about the maker of my CPU, at the moment I use both intel and amd in my systems, the only thing that is completely sure here is that if AMD go bankrupt and close, intel will rice the prices and slow their progress in making better CPUs.

Now this is unlikely to happen since there is the upcoming ARM design, but imagine what could be if AMD didn't had the breakthrough with the first dual core athlons back then?

Competition is great for us, the customers, this is what some people can't understand, or they just don't want to.

Peace people, aren't we all pleased to see technology move forward?
3 1 [Posted by: nitro912gr  | Date: 12/05/11 03:50:45 AM]
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