Language Selection

English French German Italian Portuguese Spanish

AMD; Down On It's Luck Again

Filed under
Hardware

Those of us aware of AMD's tremendous potential as a chipmaker have to be disappointed by Apple's recent news that it has chosen Intel as the sole chip provider for its Macintosh computers. In addition to the Apple news, AMD continues to strike out many of the world's largest PC OEMs, such as Dell. If the Apple news is true, this would come as a yet another financial hit to AMD and its strategies. Unfortunately for AMD, it is trapped in a vicious circle of supply and demand.

While manufacturers like Dell, Apple and others do care about performance, value and possible alternative chip suppliers, they always have a difficult time picking AMD as a supplier. The reason is clear: limited supply. Larger OEMs like Dell (and even Apple) demand high volumes of chips to fulfill its orders. Since AMD can't provide such quantities, it's hindering its own success in the market. We can't exactly blame AMD with this because it has to work with the limited financial resources it has.

The vicious cycle for AMD operates somewhat like this: AMD wants to expand à AMD can't expand due to limited revenue à AMD proposes OEMs to offer PCs equipped with its chips à OEMs decline due to lack of enough chips à AMD is back to square one. Clearly, this is neither AMD's nor the OEM's fault. AMD wants to supply its chips, but OEMs need enough quantity to cover the millions of PCs they retail annually.

Since Intel's business ventures go beyond making processors, it can cope with the costs of opening new fabrication facilities, thereby increasing production and offering better deals to OEMs that need to purchase quantities in the millions. Additionally, Intel can accept some losses in its chip business here and there, while AMD really can't.

Though OEMs, including Apple, are aware of the architectural issues with Intel's microprocessors, it's not much of a concern to them. The majority of the market they retail to isn't aware of the issues, and the systems are "fast enough" for the customers they are targeting. How much of the general computing population do you think will know the performance difference between dual-core Intel and AMD microprocessors? Yes, that's right - not very many. The main thing many customers are looking for is affordability and brand recognition, and Intel can definitely offer that.

Full Story.

More in Tux Machines

University fuels NextCloud's improved monitoring

Encouraged by a potential customer - a large, German university - the German start-up company NextCloud has improved the resource monitoring capabilities of its eponymous cloud services solution, which it makes available as open source software. The improved monitoring should help users scale their implementation, decide how to balance work loads and alerting them to potential capacity issues. NextCloud’s monitoring capabilities can easily be combined with OpenNMS, an open source network monitoring and management solution. Read more

Linux Kernel Developers on 25 Years of Linux

One of the key accomplishments of Linux over the past 25 years has been the “professionalization” of open source. What started as a small passion project for creator Linus Torvalds in 1991, now runs most of modern society -- creating billions of dollars in economic value and bringing companies from diverse industries across the world to work on the technology together. Hundreds of companies employ thousands of developers to contribute code to the Linux kernel. It’s a common codebase that they have built diverse products and businesses on and that they therefore have a vested interest in maintaining and improving over the long term. The legacy of Linux, in other words, is a whole new way of doing business that’s based on collaboration, said Jim Zemlin, Executive Director of The Linux Foundation said this week in his keynote at LinuxCon in Toronto. Read more

Car manufacturers cooperate to build the car of the future

Automotive Grade Linux (AGL) is a project of the Linux Foundation dedicated to creating open source software solutions for the automobile industry. It also leverages the ten billion dollar investment in the Linux kernel. The work of the AGL project enables software developers to keep pace with the demands of customers and manufacturers in this rapidly changing space, while encouraging collaboration. Walt Miner is the community manager for Automotive Grade Linux, and he spoke at LinuxCon in Toronto recently on how Automotive Grade Linux is changing the way automotive manufacturers develop software. He worked for Motorola Automotive, Continental Automotive, and Montevista Automotive program, and saw lots of original equipment manufacturers (OEMs) like Ford, Honda, Jaguar Land Rover, Mazda, Mitsubishi, Nissan, Subaru and Toyota in action over the years. Read more

Torvalds at LinuxCon: The Highlights and the Lowlights

On Wednesday, when Linus Torvalds was interviewed as the opening keynote of the day at LinuxCon 2016, Linux was a day short of its 25th birthday. Interviewer Dirk Hohndel of VMware pointed out that in the famous announcement of the operating system posted by Torvalds 25 years earlier, he had said that the OS “wasn’t portable,” yet today it supports more hardware architectures than any other operating system. Torvalds also wrote, “it probably never will support anything other than AT-harddisks.” Read more