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AMD benefitting from Intel's $1B mistake

Intel must be the gift that keeps on giving to AMD. In late 2009, Intel was forced to pay AMD $1.25B for its years of monopolistic behavior in the processor market. Now, AMD is benefiting directly from Intel's Series 6 (Cougar Point) chipset woes

In late January, Intel explained that it had uncovered a SATA problem with Cougar Point that could cause performance degradation over time. As a result, Intel stopped shipment of the affected chipsets, will take a charge of roughly $1B, and won't start shipping updated chipsets to its partners until later this month (volume shipments to customers will come later).

Not surprisingly, AMD is profiting greatly from Intel's gaffe according to Fox Business News. "We have some customers and retailers who have come to us specifically as a result of Intel's chip problem," stated AMD exec Leslie Sobon. "Some retailers have had to take things off their shelves, so they call us to ask what they could get from our OEMs that's similar. And OEMs are asking us for product, as well." 

Fox Business News goes on to report that computer manufacturers that sell both Intel and AMD systems are coming to the latter to supply more processors/chipsets to make up for the shortfall due to the Cougar Point woes. 

AMD earlier this year unveiled its Fusion processors that feature onboard DirectX 11 graphics. AMD says that netbooks using the chipset will have over 10 hours of battery life.

AMD has also been in the news recently thanks to the ouster of Dirk Meyer as CEO. Meyer was removed from his position due to a lack of vision when it comes to mobile computing devices like smartphones and tablets.

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RE: Nothing, I'm afraid
By DanNeely on 2/9/2011 11:26:41 AM , Rating: 5
I doubt overall sales will drop much. Enthusiast sales yes, but we're a very small fraction of the total market. Large corporate buyers won't be affected since their purchases aren't tied to dates, not new platforms. Mass market purchases won't be affected because Joe User doesn't know/care about the stuff we do, nor does he do anything that needs a high end system where it would matter.

RE: Nothing, I'm afraid
By omnicronx on 2/9/2011 4:07:03 PM , Rating: 2
I doubt overall sales will drop much.
I would tend to agree, but not dropping upon a platform release that would put you far ahead of the competition is essentially the same thing.

Do you seriously think this won't impact Intel sales? Had the release gone well, Intel would have most likely been taking away sales from AMD.

If anything, Intel is merely prolonging higher AMD sales longer than it should have before their next major milestone release.

That in my mind is still dropped sales, as their expectations would have surely been higher had the platform release gone well.

I would also like to point out that suppliers may have to fill in the gap for the missing platform as they probably readied space and were relying on the new release. Those have to come from somewhere, and I really doubt it will all be from Intel.

That said, as others have noted, this is merely temporary and Intel will surely recover.

"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

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