Innovation the Key for AMD/ATI to Maintain Momentum Versus Intel
SCOTTSDALE, Ariz., August 8, 2006 -
The x86 processor markets have gone from boring to exciting as the dynamics of the computing market continue to change. Through this change AMD has emerged as a much stronger and more focused competitor than Intel has faced before, but it is still a much smaller company than Intel and must continue to innovate and execute to maintain its momentum in the market, reports In-Stat (http://www.in-stat.com). In response, a much larger Intel has a new sense of urgency and is responding with new products and strategies. In the future, AMD will have to continue to be innovative to maintain its momentum.
“In the face of stiffer competition from Intel, AMD’s acquisition of ATI may be another game changing event with the planned integration of Graphics Processing Units (GPUs) into future PC processors. The battle for the PC is no longer just a processor war, but truly a platform war,” says Jim McGregor, In-Stat principal analyst.
Two recent resear
AMD’s PC and server market shares have been rising steadily since the first quarter of 2004. The company has captured more than 22% share in both the PC and server markets on the advantages of the AMD64 architecture.
AMD is facing a stronger challenge from Intel’s Core microarchitecture, but has recently enhanced the entire AMD64 product line with DDR support and is currently transitioning to a 65nm production process.
AMD is looking to its ecosystem partners for future platform enhancements, such as the Torrenza initiative to provide interface- and socket compatible co-processors for servers and the Trinity initiative to provide open platform management standards.
AMD’s acquisition of ATI faces many challenges, but it is likely to have a major effect on the PC ecosystem, ranging from various CPU and GPU vendors to semiconductor foundries.
The effects of the increased competition from Intel and the acquisition of ATI will likely not be determined for at least 12 months.
Recent In-Stat research, The AMD Challenge: A Reversal of Fortunes (#IN0603351SI), examines the changes in the competitive environment and how AMD has capitalized on the new opportunities and its efforts to maintain its momentum in the face of renewed competition from competitor, Intel. The report also offers a view of the new competitive landscape and the strengths of both AMD and Intel that are likely to determine the outcome of this renewed rivalry over the next several years in the looming platform battle.
The research, “The Deal of the Year: AMD Acquires ATI” (#IN0603362SI), takes an in-depth look at structure, risks, and potential benefits of the acquisition of ATI Technologies by AMD. The report also breaks down some misguided industry perceptions by examining the long-term ramifications to the computing markets and the potential effects to the key players, including processor, GPU, and chipset vendors, as well as the foundry manufacturers.
This research is part of In-Stat’s new PC Technology service. This service analyzes the market and technology changes that effect current and future PC system architectures. Service coverage includes in-depth analysis of core-logic, graphics, internal interfaces, external wireless interfaces, and other changing PC technologies, as well as coverage of changing usage models, current issues in the PC market, and roadmaps for future PC processors.
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