AMD to aim for business market in 2003

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
AMD will heavily target the corporate market in 2003 in an effort to pull itself back to profitability, company executives said on Thursday. Additionally, the company confirmed it will begin to lay off employees this quarter and try to reduce expenses by $100m (about £64m) per quarter by the second quarter of 2003. "It will be a significant number," AMD chief executive Hector Ruiz said at a meeting for analysts. "For us to meet our tough (cost saving) projections, it is inevitable that people go with that." Although AMD will continue to defend its position in the consumer market, the company will put most of its energy into getting its chips into servers, corporate desktops, and "thin and light" notebooks, executives said at AMD's annual analyst meeting. A new version of the company's Athlon chip for thin notebooks, the most popular kind shipped to corporations, will be sent out to manufacturers this quarter, said Rob Herb, senior vice president of sales and marketing. Notebooks featuring the chip will appear in the first quarter. The new chip is architecturally similar to current AMD mobile chips but comes in a thinner package and consumes between 16 watts and 25 watts, less than other AMD mobile chips, he said. Roughly 74 percent of notebooks sold to corporations are thin and lights, Herb added, and half the volume of notebooks from the big three manufacturers -- Hewlett-Packard, IBM and Dell -- fit into this category. The push into corporate desktops and servers will also begin in the first half of 2003 with the release of the first Hammer chips. The company did not disclose whether major computer makers have decided to adopt the chip, but said all of them are testing it for servers. Executives from IBM and Dell have made glowing comments about Hammer's potential. "We have yet to penetrate the tier one computer manufacturers" in the server market, Herb said. "We think we are on the verge of being able to do that." Aiming for corporate clients
The corporate push will take place both in the United States and overseas. The company has visited more than 800 large corporations in the past year to discuss its technology and to try to erode the historical barriers against it, Herb said. AMD will also make a concerted effort to move into China. Opteron, a version of Hammer for servers, will debut with about 2GHz and will be marketed with a performance rating in the mid-3,000s, said Dirk Meyer, senior vice president of the computational products group. By the end of the year, the performance rating will go to the 4,000 level. The numbers represent the overall performance the chips exhibit and generally correspond to the megahertz of Intel's chips. The desktop version of Hammer, meanwhile, will come out in the first quarter. Like Intel, AMD will begin to try to establish tighter links with computer makers, coining reference designs and contributing more technology to the construction of computers, Ruiz said. Intel, for instance, designed and manufactured many of the first Itanium servers. Additionally, AMD will continue to try to expand its market share in flash memory. Before this year, the company largely sold its flash memory within the networking market. In 2002, though, it began to shift more emphasis onto the cellular market and since then has been able to take market share away from Intel, according to Herb. AMD landed a contract this week from an unidentified cell phone maker to supply flash memory to one of its high-end phones, Herb said. The contract earlier belonged to Intel, he added. Six of the top 10 cell phone makers in China now use AMD flash, said Bertrand Cambou, vice president of the flash group. The flash market is expected to grow by 35 percent next year, and the company says its flash memory output will grow even faster. Of course, these ambitious plans come at a time when the company has been losing market share, reporting huge financial losses and experiencing product delays. Still, the Hammer chip could help it recover. "If they can get Opteron out and if they can solidify their balance sheet, they will be with us for a while," said John Joseph, an analyst with Salomon Smith Barney.
See Chips Central for the latest headlines on processors and semiconductors. To find out more about the computers and hardware that these chips are being used in, see ZDNet UK's Hardware News Section. Have your say instantly, and see what others have said. Go to the Chips Central Forum. Let the Chips Central editor know what you think by email. And sign up for the weekly Chips Central newsletter.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

1 hour ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

3 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

3 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

3 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

4 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

4 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

5 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

5 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

5 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

8 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

9 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

9 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

10 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

11 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

13 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

21 hours ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility
txtrainguy

Replying to an old topic that I'm currently facing with my CEO (who is on a Mac). Our servers are primarily Windows Servers, office is about...

1 day ago by txtrainguy on Windows Server 2008 drops the ball for Mac compatibility
k0tcs3

Sure, that makes perfect sense. Pay wrong-doers money and thank them for breaching your security and pointing out your flaws, that would surely...

1 day ago by k0tcs3 on US indicts Romanian over NASA climate change hack
Random_Error

I think he's referring specifically to Android apps, as Apple do regulate their App Store, but Google seem to let any old crap onto the Android store!

1 day ago by Random_Error on RIM: BlackBerry will keep 'garbage' apps out of store