Originally Posted by Licht
Heavily discounted chips and to no longer be in a master slave relationship with Intel.
Originally Posted by Domino
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