Wednesday, November 24, 2004

AMD is nipping at Intel's heels

Advanced Micro Devices (AMD, for short and for convenience) is gaining marketshare from its archrival Intel. They've been foraying into newer areas and slowly penetrating various markets. Even in India, they've come out with a PIC (Personal Internet Communicator) in collaboration with Tata Indicom (read more news here). The PIC is expected to cost $ 185 which is roughly Rs.8510 and is psychologically an important number because it's not a five-figure!

This, in my view, is a good move and they can put paid to Intel's unquestioned dominance of the personal computer market. Apart from this, apparently, there's a move to get Dell to use AMD. Check out portions of Kevin Rollins' interview with Infoworld News (complete interview here):

Infoworld: It seems a lot of your competitors have supported AMD. What is your stance on that?

KR: Two things. I am sure there will come a time when we are going to use AMD. The products have been getting better. The acceptance is getting better. But we have not been suffering as a company for either growth or profitability because we haven't had AMD. In fact, frankly, I think just the opposite. The companies that have been using AMD have been doing the worst.

Infoworld: Interesting. So do you see AMD being a viable competitor in the long run?

KR: Yes we do. The technology is better, and in some areas now they are in the lead on Intel. That is what interests us more than anything. But we have not been losing a ton of business because we haven't had AMD. At the end of the day we have to be profitable and grow, and so that is going to be the main indicator of what we might do. But my guess is that we are going to want to add that to our product line in the future.

People, brace up for a chip war that will be no chip off the old block!!