AMD Financial Analyst Day 2008 Review 10

AMD Financial Analyst Day 2008 Review

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What AMD Means to You in 2009

As a consumer:
AMD has a significant market position. Its accomplishments directly impact on the market, component pricing, and the fortunes of relatively larger companies such as Intel and NVIDIA. Both companies have had phases where AMD provided fierce competition, leading to severe price-cuts, rapid innovation, and optimism in both the consumer and investor levels.
In 2009, AMD doesn't look like it is going to revolutionize the market from whatever has been disclosed so far, but by coming up with better products and using those products to come up with end-user solutions, AMD hopes to have a better impact on the market. AMD is coming up with a new range of processors, which deliver a good level of performance, which can be supplemented by the benefits of investing on stronger graphics, with the money saved from opting out of stronger processors.
Today's games are more GPU intensive than ever, and by striking the right balance between the CPU and GPU(s) used, you could end up with a decent gaming platform. AMD looks to continue competing aggressively with NVIDIA in the graphics products segment, with an offering for every price-point, for every application. The kind of impact AMD is about to have on the CPU market is uncertain, but on the graphics front, if the momentum is maintained, consumers will continue to have rapid innovation, product-launches and attractive price-tags.

These are good times for IT managers. AMD's enterprise solutions have always been looked up to, for their virtualization capabilities, efficiencies and platform flexibilities. The big names in enterprise computing such as IBM and Sun look up to AMD as a formidable x86 solution provider. While as a mainstream personal-computing consumer, solutions by Intel currently outclass AMD, the value of making up for CPU power difference with moving your CPU budget to the graphics sub-system budget is what AMD is trying to brandish, with its solution-driven approach. For an enterprise user, the expandibility, and virtualization AMD solutions offer make for winning points.

As an investor:
AMD is being largely conservative about its estimates, though looks optimistic about all of it. A target-oriented product and service delivery model under the "Fusion" concept looks to impact on the larger chunk of consumers, to whom the understanding of the various components of a computer or a communication device isn't there, and they depend largely on end-results of solutions computer vendors offer.
AMD is going to be stepping up its relations with hardware manufacturers, retail channels, and the consumer in general. The diversification of AMD's solutions from target markets of basic internet devices to enthusiast-grade PCs, from workstations to dense data-center servers, hopes to make AMD's offerings more noticeable to the average person, as well as informed individuals such as computer enthusiasts, system integrators, and IT managers.
The transfer of assets to the foundry company helps stabilize the company. It helped bring down projected capital expenditure for 2009 (vide. Guidance), snip short-term payments after capital transfer of $ 1B toward the foundry company.
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