Saturday, August 01, 2015
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Microsoft Sees Growth Beyond The Desktop With Windows 10
Yahoo Gets Fashionable With Acquisition Of Polyvore
NVIDIA Recalls SHIELD Tablets Due To Battery Issues
Firefox Attacks Microsoft Over Default Browser in Windows 10
Sharp to Exit Americas TV Market
Researchers Showcase Javascript-based Attack On a Computer's DRAM
Hackers Used Twitter hashtags To Extract Data From Compromised Networks
Facebook Unveils New Security Checkup Tool
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 Home > News > PC Parts > AMD Gam...
Last 7 Days News : SU MO TU WE TH FR SA All News

Tuesday, August 01, 2006
AMD Gambles on ATI Route to New Markets


AMD hopes its acquisition of ATI will help drive growth in new markets. But AMD faces significant risks to its execution. Its graphics rival nVidia is likely to prevail through 2008.

On 24 July 2006, AMD announced that it has agreed to acquire ATI for $5.4 billion in cash and shares. The deal is expected to close during 4Q06.

AMD is betting that having graphics and chipset capabilities in-house will enable it to take market share from Intel. On completion of this deal, AMD will be able to offer AMD-branded systems that compete directly with Intel?s platform chipsets and packages and, in the long term, enable it to develop highly integrated graphics and processor silicon. AMD has promised tangible results from this deal during 2007, which we anticipate will include a system-in-package design for notebooks. Such integration will deliver longer battery life than is offered by AMD?s current solution.

AMD has long extolled the virtues of its not being a chipset provider. This acquisition will inevitably alienate partners nVidia, SiS, Via and Broadcom. Intel could take advantage of this situation and put pressure on AMD by helping nVidia capture a larger share of graphics revenue associated with Intel-based systems.

ATI's business within the highly competitive markets for cell phones and digital TV devices will also pose a challenge for AMD. However, AMD has identified an opportunity to add value to ATI's offerings by bringing x86 capabilities to this market. AMD's decision to acquire ATI was motivated in part by AMD's belief that half of the world's population should have Internet connectivity by 2015, which has led to AMD's 50x15 initiative.

Overall, acquiring ATI is a risky bet for AMD. Its market share gains must be large enough to make up for the high price of the acquisition, the attrition of ATI?s Intel-related business, declining margins in a consolidating PC industry, and the risk that the consumer electronics business it has acquired with ATI may languish in the shadow of AMD's focus on microprocessors

Gartner analysts recommend PC and server buyers to take no action, as the acquisition will not have any immediate effect on product portfolios from leading PC suppliers.

PC vendors should expect Intel to provide more support for nVidia technologies, such as the double graphic card SLI technology.

Partners in consumer electronics should monitor ATI's product road maps for signs of changes in its long-term commitment.


Previous
Next
IBM to Use AMD Processors in New Servers        All News        EVGA Introduces the Water Cooled EVGA e-GeForce 7950 GX2
IBM to Use AMD Processors in New Servers     PC Parts News      NEC Develops New Design Method for High Speed LSI with More than 50 Million Transistors

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
Android Lollipop Rolls For the Xperia Z3 and Xperia Z2 Series
Sony Mobile and ZMP to Develop Enterprise Solutions that Utilize Autonomous Unmanned Aerial Vehicles
New AMD Godavari A8-7670K Desktop Processors Released
AMD Reports Weak Second Quarter Results
AMD's Partners Bring The Fury To The Market
New Catalyst 15.7 Driver Brings Performance Optimizations
New AMD FirePro S9170 Server GPU Has 32GB Memory
AMD Lowers Second Quarter Outlook, Moves To FinFet
Sony PlayStation Vue Will Soon Not Require A Game Console
AMD Fury X Reviews Show Impressive Performance That Does Not Put Nvidia's 980 Ti Aside
Android M Developer Preview Available for Xperia Devices
AMD Considers Spinoff, Breakup: report

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .