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Ok so is AMD getting out of the dedicated GPU market or what?

post #1 of 6
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I read in Maximum PC that AMD is going heavy on APUs. Then some people online equated that to them leaving the GPU market because their GPU profit margin is so thin. I can see that because they give a lot of bonuses away for people to buy their cards. I bought a 7870 and I got Bioshock Infinite and Tomb Raider for free. It seems to me that if they weren't hurting for sales, they wouldn't need to attract more customers by giving so many things away. But I am no business man and my understanding of business is very basic. Based on how fast they are going in the APU direction, it would not make sense for them to keep putting out GPUs because a GPU makes an APU unnecessary. That being said, what do you think their plans are from this point forward? Personally, I don't care what they put out as long as performance is not impeded upon. If they can make an APU with the same power as an FX 8350 and HD 7870, then I will be a happy guy. Another thing to consider is that AMD is the company making the APUs for the PS4 and Xbox One. They seem to have put a lot of money behind APUs.

I am not trying to predict anything, I am only asking questions so please do not think I am trying to say anything.
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post #2 of 6
You need to keep APU and GPU in perspective. 90% of PCs sold to the general consumer and business market have NO GPU installed in them. For those customers, a iGPU or APU makes the best sense cost-wise.

There will always been AMD and NVIDIA GPUs. The market cap is far to big to abandon them. Profit margin from chip to retail is a lot bigger than you think - I bet those $699 GPUs are being made for $200.

Greg
post #3 of 6
Thread Starter 
Quote:
Originally Posted by hammong View Post

You need to keep APU and GPU in perspective. 90% of PCs sold to the general consumer and business market have NO GPU installed in them. For those customers, a iGPU or APU makes the best sense cost-wise.

There will always been AMD and NVIDIA GPUs. The market cap is far to big to abandon them. Profit margin from chip to retail is a lot bigger than you think - I bet those $699 GPUs are being made for $200.

Greg

damn. For real? That's a lot of profit. I just assumed that their profits couldn't be that good because AMD and Nvidia give away so many incentives to buy their product. But that may actually be because they make a lot of profit from them and they want you to buy their expensive stuff. That makes sense if you think about it that way.

And I just had to put a $30 GPU into my dad's work computer because the monitor I bought him didn't have VGA. It's a nice 23 inch 1080p monitor and his computer's HDMI doesn't work for some reason. So I had to get him a GPU with DVI. I got him an HD 6450.
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post #4 of 6
Amd is leaving the mainstream market of cpu(at least during 2014) not gpus
Edited by PontiacGTX - 1/14/14 at 3:32pm
post #5 of 6
Anyone in the GPU world I talk to say GPUs have one of the least profit margins. It will be more for AMD and Nvidia compared to the board partners but I don't think it's that high.
post #6 of 6
Quote:
Originally Posted by hammong View Post

You need to keep APU and GPU in perspective. 90% of PCs sold to the general consumer and business market have NO GPU installed in them. For those customers, a iGPU or APU makes the best sense cost-wise.

There will always been AMD and NVIDIA GPUs. The market cap is far to big to abandon them. Profit margin from chip to retail is a lot bigger than you think - I bet those $699 GPUs are being made for $200.

Greg

I don't think the profit is that big. You have to remember that most GPU's have 4-5x the amount of transistors as your typical I7. The silicone Die ain't cheap
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