Is AMD a real company?
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December 12, 2012, 12:23 AM
Join Date: Jul 2010
Is AMD a real company?
Companies compete with each other and consumers benefit, but when there isn't competition -and only one company offers a particular service- countries look after their consumers' interests, and interfere and regulate the Monopolistic companies, making sure their services are kept within reasonable cost and quality.
What if you, as a company, can monopolize on a lucrative industry while avoiding costly governmental interference? What would be the best way to go about it?
AMD's war with Intel has been lost a long time ago, and the shape and direction of the company has been determined by its competitor whom have more use of it alive than dead. Now I'm seeing signs that Nvidia is also starting to have a predetermined advantage over AMD.
AMD vs Intel: AMD exits from chip manufacturing and buys from TSMC, whom are always one generation behind Intel. They can only focus on low-end, low profit products while Intel can sell newer, more powerful, smaller and cheaper products for a higher profit margin.
That means Intel makes the cake, eats %95 or higher of it, and feeds AMD enough just to barely keep it alive. AMD is acting as an independent branch of Intel that caters to a small market that Intel has no intention of entering. That's Monopoly while avoiding the regulatory restrictions of one.
AMD vs Nvidia: Both AMD and Nvidia purchase their chips from TSMC. Both companies seem to trade blows fairly, but for most of the year, many consumers as well as I were appalled to see that AMD manufactured power hungry video cards that do not match Nvidia's cards' performance, quite the opposite of what we're used to. Only to find out by the end of the product cycle that AMD's cards are more powerful, but due to non-optimized drivers did not show their true strength. Add in the overpricing in the beginning of the product cycle and you have a definite path to failure, or just willfully handing over the market share to your competitor.
What kind of idiot builds a V8 Cadillac and throws a wrench in the engine and charges %20 over its competition before selling it? Either AMD is that idiot or they are not allowed to sell a better product than Nvidia for most of the year. Maybe this Christmas is AMD's last hope of survival and if they don't sell enough, in the future they'll be purchasing older chips and selling sub $100 cards and leave the rest for Nvidia? I maybe exaggerating. The video card market isn't where the chip market is at the moment, but the signs show that it will be the same a few years from now.
Lastly I have nothing but respect for the AMD engineers who are still doing a great job under these circumstances. Lack of coordination between hardware and software engineers, and off-the-mark pricing of products are all business decision, not engineering ones.
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