Most recently, AMD announced that it would take
another $880 million USD charge due to the poor performance of ATI's
Consumer electronics division.
Today, AMD CEO Hector Ruiz stepped
down from his position with the company. Ruiz joined the company in January
2000 and became CEO in April 2002. Ruiz will be replaced by the current Number
2 in charge, Dirk Meyer. Ruiz will stay on as the executive chairman of AMD's Board of Directors.
The future looks uncertain as the man who has become the
face of AMD moves on to greener pastures. Meyer will have to find a way to get
AMD back on a track to profitability and get its first 45nm processors out the
door to combat Intel.
Ruiz's departure comes at a time when AMD is trying to fight
off a surging Intel. Intel just recently announced a 25
percent increase in quarterly profits at the same time AMD was reporting
losses. Intel also this week launched
its Centrino 2 platform which aims to take much of the air out of AMD's
AMD, however, has obtained better success on the graphics
front with its new Radeon HD 4850 and 4870 graphics cards which are the current
"bang for the buck" kings. AMD garnered so much praise from reviewers
and consumers alike that NVIDIA responded with price
cuts to its recently introduced GeForce GTX 260 and GTX 280 graphics cards.
AMD may also have a little bit of help on its side in the
form of an official
FTC investigation into Intel's business behavior. But the fact remains,
whatever the outcome of the FTC investigation, AMD still has to deliver a
competitive product to stay alive in this cutthroat industry.
quote: I think hector leaving will have a positive impact on AMD.
quote: AMD needs now, more than ever, to rely on heavy innovation and distinguish themselves from Intel technologically -- in some category, not necessarily high-performance. Only once AMD has claimed a significant reputation of being best-in-class in some area can you then expect to gain much out of business sense and marketing power.
quote: Honestly, it's a great time for an engineering minded person to be running AMD.
quote: Why? Because consumers are stupid, because AMD lacked critical mass (despite a vastly superior product), and because OEMs and their shareholders care more about short-term profits than long-term growth and sustainability (let alone innovation).
quote: These are all great wins, and more business than engineering, but they would be impossible if Intel wasn't a large, well-known brand with well performing products.
quote: Dirk Meyer is (was) a great engineer, but designing chips and running companies are two very different things.
quote: Ruiz, 62, joined AMD as president and chief operating officer in January 2000 and became AMD's chief executive officer in April 2002. He has served on AMD's board of directors since 2000 and was appointed chairman of the board of directors in 2004 .
quote: AMD is a long history of technical excellence, poor management, and abysmal marketing . Thank god Ruiz is gone, maybe things will start looking up again.
quote: The hits just keep coming in for AMD, and the latest is a big one.
quote: Chapter 3.
quote: Add to this Intel's price cuts to come in the 3Q & 4Q 2008