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Forums - PC - AMD Q1 2013 earnings: revenue down 31% YoY

bananaking21 on 18 April 2013
Soleron said:
bananaking21 said:
why is AMD having so much trouble lately?

- Stuck on 28nm while Intel is going to 14nm

- Less than 1/10 the R&D spending of Intel

- 40% IPC deficit to make up

Basically they don't have the cash to compete in desktop/server CPUs any more, and they are too late to move into the mobile/low power space.


so basically they are screwed for good? what market can they compete in? other then having the console market for them selfs currently



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famousringo on 18 April 2013
bananaking21 said:
why is AMD having so much trouble lately?


The PC industry is contracting. Even mighty Intel saw profits drop 25%, and they actually have a (weak) mobile strategy.

AMD has nothing at all for mobile. Not CPUs, not GPUs... nothing.



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Soleron on 18 April 2013
bananaking21 said:
Soleron said:
bananaking21 said:
why is AMD having so much trouble lately?

- Stuck on 28nm while Intel is going to 14nm

- Less than 1/10 the R&D spending of Intel

- 40% IPC deficit to make up

Basically they don't have the cash to compete in desktop/server CPUs any more, and they are too late to move into the mobile/low power space.


so basically they are screwed for good? what market can they compete in? other then having the console market for them selfs currently

They're dead. Only their graphics division has value, I expect to see it sold to Apple, Samsung or Qualcomm within the year. They sold their phone GPU business to Qualcomm right before the tablet boom -_-

Their CPU engineers will be picked up by other companies (actually many of them already have). Intel will cease to have competition for high-end desktops and laptops, but they're a shrinking market and ARM will compete with them for the casual PC, mobile, and server.



VGKing on 18 April 2013
Kasz216 said:
VGKing said:
AMD is in all next-gen consoles so I expect things to turn around for them.



Actually, there is some talk that the reason AMD is in PS4 instead of NVida is because console margins are absolutely terrible.  So Nvida walked.

 

From 2004 to 2011... NVDIA made a grand whopping total of 500 Million in royalties. 

http://www.extremetech.com/gaming/150892-nvidia-gave-amd-ps4-because-console-margins-are-terrible

It's pretty obvious that Nvidia is in damage control mode. They are bashing consoles left and right to make themselves feel better about losing out....

No, AMD being in consoles won't save the company but it will really help bring in a steady stream of profits over the next few yeras. They are providing the APUs for both next-gen consoles and they already provide the GPU in the Wii U. This can only be seen as a win for AMD and a loss for Nvdida.



Kasz216 on 19 April 2013
VGKing said:
Kasz216 said:
VGKing said:
AMD is in all next-gen consoles so I expect things to turn around for them.



Actually, there is some talk that the reason AMD is in PS4 instead of NVida is because console margins are absolutely terrible.  So Nvida walked.

 

From 2004 to 2011... NVDIA made a grand whopping total of 500 Million in royalties. 

http://www.extremetech.com/gaming/150892-nvidia-gave-amd-ps4-because-console-margins-are-terrible

It's pretty obvious that Nvidia is in damage control mode. They are bashing consoles left and right to make themselves feel better about losing out....

No, AMD being in consoles won't save the company but it will really help bring in a steady stream of profits over the next few yeras. They are providing the APUs for both next-gen consoles and they already provide the GPU in the Wii U. This can only be seen as a win for AMD and a loss for Nvdida.


I'm guessing you didn't actually read the article.  Since it involed absolutely zero quotes from NVDIA outside what was taken from their profit reports.



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S.T.A.G.E. on 19 April 2013

AMD is in Wii U, PS4 and the 720. Expect a huge turn.



Soleron on 19 April 2013
S.T.A.G.E. said:
AMD is in Wii U, PS4 and the 720. Expect a huge turn.

Console revenues are small because they only recieve a per-unit royalty and don't get the margin on manufacturing or card assembly. Even if that wasn't true, graphics are the smallest business of AMD.



S.T.A.G.E. on 19 April 2013
Soleron said:
S.T.A.G.E. said:
AMD is in Wii U, PS4 and the 720. Expect a huge turn.

Console revenues are small because they only recieve a per-unit royalty and don't get the margin on manufacturing or card assembly. Even if that wasn't true, graphics are the smallest business of AMD.


250 million consoles tops within a 5-8 year period. Yeah....they'll make their money.



walsufnir on 19 April 2013
VGKing said:
AMD is in all next-gen consoles so I expect things to turn around for them.

I don't. Imagine both PS4 and NextBox sell like this gen then AMD will sell about 150 million apus in 6-7 years... That's not *that* much. Also keep in mind that AMD was (and is) used by Wii and 360 and this didn't help them either.



NiKKoM on 19 April 2013

the profit margin for AMD on the new consoles should be pretty low.. there is a good reason why they got the contracts and not nvidia



 

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