Re-compartmentalization in Chip market
Because of the financial crisis, the whole IT business becomes depressing as well, including most magnates like Sony, Sega, and Microsoft. Even Intel, will begin to close some factories and lay off employees because of the retrogressive performance. However, AMD --- the other magnate in IT world --- developed its new product continuously while facing the same problem. AMD published series of competitive products in the past year--- from 45 nm Opteron processor which was wildly used by PUMA notebooks, series of new products launched at CES, to the Phenom™ II released in December 2008; Under such an economic circumstance, AMD still released new products according to its original item routing, from which we can see its strong execution ability, and all of these may be a signal that the Chip market share will have a re-compartmentalization.
This seems to be an evidence that AMD took series of actions correctly at the end of last year. Both being an important chip manufacturer, there’s a large disparity between AMD and Intel. In a way, it seems that AMD had no alternative but to simplify their structures and streamline their staff from last year because of the low earning yield; However, from the continuous new products launched by AMD, we seems to know something --- AMD is excellent in marketing strategy. The peeling off makes AMD have stronger resistance during the financial crisis. Without extra burden, AMD got a good chance to get fresh legs. Although some problem still existed, AMD has a better condition than other Opponents. Together with the new launched product, AMD becomes more competitive among the IT business.
Anatomizing this event, we found that the re-compartmentalization of market share for Chips had been accelerated because of the financial crisis. Since Intel and other enterprises have not been recovered from this financial chilly winter, AMD, who has already adjusted its structure, has a good chance to take action from the weakness of market. Taking the recent movements as examples, AMD Launched five new additions to its AMD Phenom™ II processor family recently, which can extend the value and lifecycle of AMD Dragon platform technology. These newcomers include the planet's first 45nm triple-core Phenom™ II CPU and three more quad-core siblings, all of which can operate in either AM2+ or AM3 sockets. These AMD Phenom™ II processors offer more choices and lay the foundation for memory transition; the move signals that AMD continues to enhance the value of the Dragon platform technology to OEM, channel partners and DIY customers, which accords their Customer Focus innovation. At the same time, its marketing strategy becomes quite clear --- to concentrate its energy to occupy the market gap with new products and technologies while Intel dwindled their business; to get hold of the DIY consumers, and attract more technonerds with high cost-performance and powerful expandability Chips.
Any technical innovation needs tests and recognitions from markets and customers, or it will lose its due value. To a brand’s part, it’s the same. Brands come down to an organic relation between enterprises and consumers and it is the image of enterprises for customers. Only competition can bring fresh and make enterprise full of vigor and vitality, and only continuous innovation is the best defence. Financial crisis, brought a chance for AMD and also brought the largest challenge for Intel. What the chip market will be in the future years? Maybe we can get an answer at the end of the year.