AMD preps for market share battle

Despite a weak PC market and lower-than-expected earnings in the fourth quarter, the 2000 fiscal year was "the most successful year in AMD's history," proclaimed Advanced Micro Devices Chairman and Chief Executive Officer W.J. "Jerry" Sanders at the company's annual shareholders' meeting on Thursday.

After four years of operating at a loss, AMD returned to profitability with net income of US$983 million on annual sales of $4.64 billion in fiscal 2000, a 63 percent increase over 1999's sales. "AMD is, for the first time, very secure in its balance sheet," Sanders said.

More importantly, the company attracted kudos from the industry in 2000 for its new Athlon chip -- International Data Group Inc.'s PC World magazine dubbed it 2000's "Product of the Year" -- and began to make inroads into the Intel Corp.-dominated high-end PC market. Sanders said that in 2001, the company will continue battling for market share with Intel and shedding its old reputation as a low-end processor supplier. (International Data Group Inc. also owns the IDG News Service.)One conspicuously missing element in AMD's arsenal is a chip for the rapidly-growing mobile PC market. To fill that gap, AMD is introducing a new mobile Athlon chip, code-named "Palomino." The chip began shipping in March 2001, and Sanders said the first notebooks utilizing Palomino will hit the market in May.

Sanders said he agrees with those who say annual growth in the PC market will continue slowing down; he estimated that the market's growth rate will drop off to the mid-teens.

"There is no question that the PC industry is maturing," he said. "The PC industry is 20 years old. All 20-year-olds are maturing."

But less growth won't impact AMD's sales and expansion, Sanders said. AMD will simply grow by poaching market share from Intel, he added. By AMD's own estimate, the company ended 2000 with 17 percent share in the PC processor market. Intel's market share is roughly 80 percent.

AMD also hopes to combat the ubiquitous "Intel Inside" marketing slogan with its own television ad campaign beginning in the fourth quarter of 2001, Sanders said.

Sanders also reiterated the announcement made three months ago, that he will retire as AMD's CEO at next year's shareholders' meeting in April 2002. Sanders founded AMD more than 30 years ago; taking over will be Hector de J. Ruiz, who joined AMD last year as president and chief operating officer.

His planned resignation adds an extra incentive to make 2001 a memorable year for AMD, Sanders noted: "The better we perform, the more graceful my exit will be."

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stacy Cowley

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?