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[X-Bit]AMD Rumoured to Be Up for Sale Again: Dell May Be the Buyer. - Page 7

post #61 of 128
My question is, WHY isn't this moved to the Rumors section??
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post #62 of 128
Quote:
Originally Posted by DuckieHo View Post
Why would Dell want AMD? It makes no sense...
Seeing that AMD is able to sell high performance CPUs at a fraction of a cost compared to Intel, having AMD chips at home saves them plenty of funds in building process. Effectively they can sell the chips at performance-cost ration and save loads on their OEM builds.

They won't need to change any sort of business plan. They are able to keep both companies seperate and work under a single income train. It'll be like Activision and Blizzard, where Dell can harp in on some extra funds.

Dell is also at the forefront of consumer base products, being server or client based. Taking over the company helps them both. Easier to get ahold of AMD processors, and easier for AMD to get their name thrown deeper into the market. They can effectively greatly lower royalty costs of selling AMD based processors or using their name.
Edited by Domino - 2/15/11 at 9:38am
post #63 of 128
Quote:
Originally Posted by Licht View Post
Heavily discounted chips and to no longer be in a master slave relationship with Intel.
Quote:
Originally Posted by Domino View Post
Seeing that AMD is able to sell high performance CPUs at a fraction of a cost compared to Intel, having AMD chips at home saves them plenty of funds in building process. Effectively they can sell the chips at performance-cost ration and save loads on their OEM builds.
Where does AMD currently make their money? A good portion of that comes for selling to the number 1, 2, 3, 4, 5, 6, 7, etc OEMs.

Do you think all these OEMs will continue to buy CPUs from Dell? No matter how much money Dell could save from building a chip in-house, they would lose the majority of AMD's current revenue stream for a net loss. In addition, Dell does not the experience to manage CPU design and long-term GPU/CPU planning. You don't just buy a company and assume everything remains status quo.

Furthermore, is it worth taking on a $6-15B risk to save maybe $100-200M a year?

There are many externalities and impacts that you aren't considering.
Edited by DuckieHo - 2/15/11 at 9:43am
Once again...
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Once again...
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post #64 of 128
Mods must be asleep. This thread needs to be moved.
post #65 of 128
Seems highly unlikely. 2010 was a successful year for AMD, as they were able to turn a good profit. 2011 might be even better if Zacate continues selling as it is now.
    
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post #66 of 128
That would suck!
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post #67 of 128
Quote:
Originally Posted by DuckieHo View Post
Where does AMD currently make their money? A good portion of that comes for selling to the number 1, 2, 3, 4, 5, 6, 7, etc OEMs.
I'm not in the same field as you so I might sound ignorant. But Dell is the third largest retailer for OEM builds are they not? AMD currently has crap all in Dells lineup for servers and client builds. Other than that, the only other heavy AMD based retailers are Acer (not as much anymore) and HP. Most remaining sales are either from gaming retailers or custom builds or big box stores.

Quote:
Do you think all these OEMs will continue to buy CPUs from Dell? No matter how much money Dell could save from building a chip in-house, they would lose the majority of AMD's current revenue stream for a net loss. In addition, Dell does not the experience to manage CPU design and long-term GPU/CPU planning. You don't just buy a company and assume everything remains status quo. There are many externalities and impacts that you aren't considering.
I think Dell and AMD would remain seperate but follow the same income tree. Dell would not be selling the processors under their name and simply help in its distrubution. Effectively the purchase would be similar to acti-blizzard in game development. I think this move would have AMD strive better in the OEM client sector, and depending on the popularity of Dell servers (it appears this entire college/uni is working under Dell based servers/PCs), then it could look good for AMD.

In the end Dell would basically be purchasing from themselves. So ya, you're right. It would not be a good move.

Edit: Hey duckie, are you able to move this to the rumor section?
Edited by Domino - 2/15/11 at 9:51am
post #68 of 128
Quote:
Originally Posted by Hawk777th View Post
That would suck!
No doubt. After witnessing what Dell did to alienware it wouldn't be unreasonable to expect newly released chips having 1090T performance but with a 990x pricetag.
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post #69 of 128
Quote:
Originally Posted by SHNS0 View Post
Funny, but strangely creepy, was Horatio intentionally putting on a second pair of sun glasses?

Reminds me of those Southern cops that have mirrored sun glasses with the mirror on the inside of the lens.

On Topic:
This is not happening till its on the news. Still curious as to what the deal is with executives resigning.
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post #70 of 128
Quote:
Originally Posted by source
"It is a far-fetched possibility," said Patrick Wang, an analyst at Wedbush Securities.
That about sums it up.

And if AMD were in the market to be purchased, I would be SHOCKED if it were by dell. That just makes no sense--unless dell has no interest in taking on the R&D tasks that AMD currently pursues. Dell has had no R&D experience in the past, so it would be a surprise that they'd take on such an undertaking.

edit:

Quote:
Originally Posted by Domino View Post
Seeing that AMD is able to sell high performance CPUs at a fraction of a cost compared to Intel, having AMD chips at home saves them plenty of funds in building process. Effectively they can sell the chips at performance-cost ration and save loads on their OEM builds.

They won't need to change any sort of business plan. They are able to keep both companies seperate and work under a single income train. It'll be like Activision and Blizzard, where Dell can harp in on some extra funds.

Dell is also at the forefront of consumer base products, being server or client based. Taking over the company helps them both. Easier to get ahold of AMD processors, and easier for AMD to get their name thrown deeper into the market. They can effectively greatly lower royalty costs of selling AMD based processors or using their name.
Dell already has a contract with AMD (afaik), so purchasing the whole company just to save money vs. using intel CPU's is ludicrous.
    
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