AMD’s Executives Admitted Inability to Compete – Intel

Former AMD Executive: I Would Never Buy AMD

by Anton Shilov
01/13/2010 | 02:39 PM

In a recently published official response (1, 2) to the accusations of the Federal Trade Commission, Intel Corp. said that AMD was unsuccessful on the market of commercial desktops and notebooks due to the fact that Intel had fully-integrated platforms, whereas AMD did not. Moreover, according to Intel, even AMD’s high-ranking executives admitted the company’s inabilities to compete.

 

“If you look at it, with an objective set of eyes, you would never buy AMD. I certainly would never buy AMD for a personal system if wasn’t working here. If I was a decision maker in a Fortune 500 company, I wouldn’t use AMD,” Henry Richard, executive vice president of marketing at AMD from 2002 to 2007, is reported to have said internally, according to Intel.

Besides, claims the world’s largest maker of chips, Mr. Richard described AMD as saddled with a reputation that “we are cheap, less reliable, lower quality consumer type of product”.

According to Intel AMD’s marketing chief called AMD “pathetic” for “selling processors rather than platforms and exposing a partial story, particularly in the commercial segment, that is clearly inferior to Intel’s if we want to be honest with ourselves”. By that, Mr. Richard admitted AMD’s incapability to compete against Intel when it comes to commercial desktops and notebooks.

In fact, one of Intel’s main advantages back in the early- and mid-aughts were fully-integrated platforms that included microprocessors, chipsets and network controllers. It was a lot cheaper for system integrators to utilize complete set of critical components from Intel rather than to validate different components from different suppliers before selling them inside personal computers to business customers, who demanded maximum reliability.

According to Intel, even AMD’s chairman and chief executive officer Hector Ruiz has confessed AMD’s helplessness to fight in the space of mobile computers.

“We were going to not be as competitive in the mobile space, even though we knew that mobile space was going to be critical. [AMD] was late with a competitive product in the mobile space,” Mr. Ruiz is reported to have said.

At last, AMD finally gained its own platforms with the acquisition of ATI Technologies in 2006. At present Advanced Micro Devices can ship all-AMD platforms (that include microprocessor, chipset and graphics adapter) and address different market segments.

It is interesting to note that despite of the fact that AMD did not have its own core-logic sets from 2000 to 2007, its AMD Opteron processors for servers gained significant market share back then, besides, AMD Athlon 64 processors also managed to become rather popular.