May 8, 2015 at 13:11AMD approved a new development strategy to reduce losses
AMD CEO Lisa Su has announced a change in company strategy. It is planned to develop only the most profitable products. For several consecutive years, AMD has suffered losses. Last year, the company's revenue was $ 5.5 billion, and losses - $ 430 million. But in the second half of the year, the company hopes to change the situation for the better.
AMD's main competitor is Intel , the market leader in microprocessors. AMD has always been second in this market. Both companies produce chips for the x86 architecture .
In addition, AMD began to develop high-performance chips for the latest generation of game consoles to order. However, the mass production of central microprocessors is the main focus of the company. Therefore, a further reduction in revenue in this segment cannot be allowed. The share of the company's most expensive and profitable processors over the past 10 years has fallen from one third to 3%.
In accordance with the new strategy, AMD decided to minimize the cost of developing products for custom PCs, tablets and other consumer-class devices. The main focus will be on the production of expensive and complex products: chips for virtual reality systems, gaming and commercial PCs.
The x86-based chips will be significantly improved. In addition, compatibility support for x86 and ARM architectures in the same motherboard will disappear .
AMD chips will use LiquidVR technology for virtual reality . It is designed to reduce image processing delays.
According to AMD experts, earnings may reach 50 cents per share in the long run. Since January 2015, the company's shares have become cheaper by 15%. However, last Wednesday their quotes grew by 1 cent - to $ 2.29, reports The Wall Street Journal.
AMD's main competitor is Intel , the market leader in microprocessors. AMD has always been second in this market. Both companies produce chips for the x86 architecture .
In addition, AMD began to develop high-performance chips for the latest generation of game consoles to order. However, the mass production of central microprocessors is the main focus of the company. Therefore, a further reduction in revenue in this segment cannot be allowed. The share of the company's most expensive and profitable processors over the past 10 years has fallen from one third to 3%.
In accordance with the new strategy, AMD decided to minimize the cost of developing products for custom PCs, tablets and other consumer-class devices. The main focus will be on the production of expensive and complex products: chips for virtual reality systems, gaming and commercial PCs.
The x86-based chips will be significantly improved. In addition, compatibility support for x86 and ARM architectures in the same motherboard will disappear .
AMD chips will use LiquidVR technology for virtual reality . It is designed to reduce image processing delays.
According to AMD experts, earnings may reach 50 cents per share in the long run. Since January 2015, the company's shares have become cheaper by 15%. However, last Wednesday their quotes grew by 1 cent - to $ 2.29, reports The Wall Street Journal.