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Advanced Micro Devices has admitted inevitable: the decease of the market of graphics processing units as a result of high-performance offered by accelerated processing units (APUs) with built-in graphics engines.

“In the long run, parts of [graphics cards] business will be cannibalized and the low-end discrete GPUs will be replaced with Fusion-type products. This is all goodness for us because it replaces low-cost margin revenue with high-gross margin revenue,” said Thomas Seifert, interim chief executive officer of AMD, during the most recent conference call with financial analysts.

Earlier AMD insisted that low-end graphics cards – such as the company’s Radeon HD 5400- and 6400-series – will continue to exist despite of performance increase of integrated graphics solution.

At the same time, AMD dramatically boosted performance of its inexpensive code-named Caicos graphics chip (Radeon HD 6400) compared to previous-generation Cedar GPU (Radeon HD 5400) so to make it competitive against its A-series accelerated processing units code-named Llano.

AMD needs inexpensive discrete GPUs so to offer an affordable upgrade option for systems that utilize Intel Corp.’s microprocessors with integrated graphics, such Core i-series “Sandy Bridge” microprocessors. At the same time, AMD needs to avoid competition between its APUs with integrated entry-level graphics engine and low-end discrete GPUs.

 

Tags: AMD, Radeon, ATI, Fusion, Llano, Cedar, Caicos, Northern Islands

Discussion

Comments currently: 15
Discussion started: 07/24/11 07:33:10 PM
Latest comment: 12/25/12 10:12:08 PM
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1. 
How low end? anything below the 6400 series low?
0 0 [Posted by: seronx  | Date: 07/24/11 07:33:10 PM]
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2. 
I've seen many people using Geforce FX5200 256mb and Radeon X300 SE 256MB cards with Sandybridge because the Built in videocard on the CPU was soooooooo crap!

Intel still makes horrid videocards and this doesnt look like it will be changing anytime soon. So long as intel has 80% of the PC market people will still buy these really cheap low end videocards by the truckload as an alternative to Intel's horrid performing graphics

1 2 [Posted by: vid_ghost  | Date: 07/24/11 10:06:55 PM]
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There's a name for these people who have Sandybridge and buy such cards: suckers.

Why would anyone in their right mind pay for a card that could barely play DX9 games when it came out when they have integrated graphics that can run recent games and support DX10?
2 0 [Posted by: ET3D  | Date: 07/25/11 12:12:10 AM]
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because most people don't care about games ?
0 1 [Posted by: obarthelemy  | Date: 07/25/11 01:39:56 AM]
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So what do they care about? In what way is a GeForce FX 5200 better than the Sandy Bridge integrated graphics?
3 0 [Posted by: ET3D  | Date: 07/25/11 02:29:46 AM]
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You don't have to care about games, almost everything is getting through the GPU now, OS visuals, video rendering (yeah I mean for viewing video), etc.

Unlike the crappy intel HD series the new integrated GPU into SB are pretty reasonable solution for a modern system and way better than any god forgotten gpu like the ones you mentioned, to begin with, those cards barely had PCI-e versions, why to add a bottleneck like this in a modern system?
0 0 [Posted by: nitro912gr  | Date: 07/25/11 04:28:56 PM]
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Depends on what one would call horrid: being able to play HD/1080p/3d content fluidly and recent games on low settings is not too shabby in my book. Also, lLano being able to do recent games on mid-range settings comes at a price as well; up to 40% of transistor budget / dye space, making it more suitable for the somewhat more serious gamers among us.
0 0 [Posted by: sanity  | Date: 07/25/11 04:33:35 PM]
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My FX5900 overclocked and reflashed to FX5950 can't compete with Sandy Bridge's graphics processor.

How do I know? The FX5900 is slower than AMD's integrated 790GX/890GX/HD4200. ...
0 0 [Posted by: MonkRX  | Date: 07/25/11 04:40:10 PM]
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3. 
Vid Ghost makes a very good point.

Last year, European and American antitrust authorities uncovered widespread evidence that Intel bribes retailers and computer manufacturers not to sell AMD products.

Thus, Intel's 80% market share is thereby impossible to reduce. As a result, all computer buyers will be forced to continue buying cheap add-on graphics cards to compensate for Intel's "horrid" graphics.

0 0 [Posted by: jamminjoe  | Date: 07/24/11 10:36:15 PM]
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This is common practice at south east asia. e.g. at Malaysia it is very common that for smaller retailer, WD bribes retailers not to sell Seagate and Samsung HDDs.
0 0 [Posted by: ctmk  | Date: 07/25/11 06:38:47 AM]
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"Common practice" does not turn an illegal action into a legal one.
Reducing competition ultimately hurts consummers.
0 0 [Posted by: gjcjan  | Date: 07/26/11 06:44:41 AM]
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4. 
I wouldn't call it "admit". It's just a shift from Nvidia's and AMD's low end discrete GPUs to Intel's and AMD's integrated GPUs.

And this might even be in favor of AMD:
They sell a low end GPU as part of an APU die (sth like 75mm², adding maybe $5-$8 to costs) instead of producing a low end GPU die (to be attached to a CPU), packaging and testing it and selling it to graphics card makers at likely low margins (the BOM includes much more than just a GPU - so how much would remain for AMD?).

APU's don't just eat into AMD's low end dGPU revenue (but add on the APU side), they also eat into Nvidia's low end dGPU revenue.
0 0 [Posted by: Dresdenboy  | Date: 07/25/11 06:37:46 AM]
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more reason to get AMD
it's cheap! and for long term maintenance wise, i only need to worry about the CPU fan/cooler.
1 0 [Posted by: ctmk  | Date: 07/25/11 06:40:58 AM]
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Yes, I just upgraded to a Phenom II X6 1090T and the fan is so loud I had to order a replacement cooler. Hopefully that would solve the problem (I should get it in two days or so). It's the first CPU I ever felt I needed something better than the stock cooler, and it made the CPU a little less of a bargain.
0 0 [Posted by: ET3D  | Date: 07/26/11 12:42:08 PM]
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5. 
There basically dead anyway anyone players any game that needs hardware acceleration needs better then a HD7470 it struggles to play Runescape maxed & Runescape is not a demanding game by any stretch of the immignation.

Anyone who wants a PC that needs a GPU that's better then onboard for work or multimedia is going to want something better as well.

The only people who should be buying a HD7470 based system or lower are ones that probually don't even benefit from having a descret card to begin with the HD2000/HD3000 on the Intel CPU is good enough or the onboard is good enough for those from AMD in that boat.

It's just an add in to hype marketing for OEMs.
0 0 [Posted by: nerbne  | Date: 12/25/12 10:12:08 PM]
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