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Case Code: BSTA001
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| Case Length: 16 Pages |
| Period: 1990 - 2005 |
| Pub Date: 2005 |
| Teaching Note: Not Available |
| Price:Rs.500 |
| Organization :AMD (Advanced Micro Devices); Intel |
| Industry :Semiconductors |
| Countries : Global |
| Themes: |
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AMD in 2005: Coming out of Intel's Shadow |
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INTRODUCTION |
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| In 2004, Hector Ruiz (Ruiz), CEO of Advanced Micro Devices (AMD), was reflecting on how his company was faring in its battle with Intel in the 64-bit microprocessor market. Itanium I, Intel's first 64-bit microprocessor had failed. By 2004, many companies such as Microsoft, IBM and HP, which had been staunch supporters of Intel, had started using Opteron. Even Sun Microsystems (Sun), a company that traditionally used its own SPARC chips, had started using Opteron.
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| These companies saw AMD as a means to increase their market share by offering high-quality but low-priced products. As a result, by 2004, AMD had become a major supplier of microprocessors in the server market.
Historically, AMD had ranked a distant second in PC microprocessors with a market share of about 15%, compared to Intel, which had about 80%. In the past, AMD had made inroads into Intel's market share only to see Intel strike back with steep price cuts and faster introduction of new models |
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