According to PCWorld website reported, AMD does not want its chips are used in low-cost tablet in and eager to avoid the front with Intel, Now ARM launched the contest, the current ARM chips are to push the prices down of Tablet PC to below $100.
AMD processors only been applied in several tablet models. After these AMD chips can be used to dilute the tablet is in the PC chip has a strong graphics capabilities to get. Now AMD plans to launch a new chip, code-named Beema and Mullins, for tablet PCs, these new chips based on a new core, designed to provide higher performance and longer battery life. The New Beema and Mullins will replace the Kabini APUs.
Lisa Su, general manager of AMD’s global business units in the first quarter earnings Thursday’s conference call , said: “If we missed some opportunities to low-end devices, then so be it.”
AMD does not provide funding to the Vendors
AMD executives said they did not want to use Intel’s way into the tablet market. Intel through “revenue offset” (contra revenue) program funded tablet makers to use its x86 chips. But AMD hopes to become flat-party product portfolio optional one, and focus on high-margin and high-value products.
AMD CEO of Raleigh Reid (Rory Read) on a conference call, said: “Revenue has nothing to do with us against this idea.”
Principal analyst at Mercury Research Dean Maika Long (Dean McCarron), said targeting a wider tablet market is not a good idea for AMD. AMD is the more resources transferred out tablet PCs, game consoles and steering, as in the console market with more economic returns.
AMD needs large number of customers
Maika Long said, AMD does require one to two large customers to help them develop the Tablet PC business. “In the chip on which products will be used, they are very wise, and these products are consumer’s personal home use device.”
$ 200 million of the chip business is big business for AMD, but Intel is just a small business. Intel also has its own factory, and also provide funding to manufacturers to use their chips. The AMD awarded the contract to produce chips from other manufacturers at GlobalFoundries.
Intel expects to sell 40 million tablet computer chip, which this week announced that in the first quarter of this year, it has sold five million tablet chips. The tablet market is currently favorable for ARM, so Intel was forced to provide assistance to the Tablet PC manufacturers to encourage them to use their own x86 chips.
The same as in the PC market, AMD also can make use of Intel’s success, out of its own way into the x86-friendly tablet PC market. Brookwood said:. “This is not the first time a similar thing happened, but I think they actually do not want to do.”