Boston, MA 01/15/2013 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) is a smaller company compared to Intel Corporation (NASDAQ:INTC). However, the company has put its best foot forward to vie for the bigger share of chips market against the giant. As to whether the company has any chance in this battle is the purpose of this article to discuss.
It is true that AMD falls behind Intel in many things including market share, technology and finances. But the company is exploiting what is available to it to give Intel run for its money. The company has taken to low-pricing and special focus on graphics for game consoles to raise revenue beyond the traditional PC market which is otherwise declining.
Many analysts have sought to give Advanced Micro Devices, Inc. (NYSE:AMD) the benefit of doubt going into 2014. This is due to the multiple strength areas that can be seen in the company. It can be seen that AMD is winning with its low-price approach to the declining PC market. The company is also tightening its grip on the server market which indicates potential to improve revenue.
Graphics market
Advanced Micro Devices, Inc. (NYSE:AMD) is taking a unique approach into graphics chip market. The company has cut deals with game console makers Microsoft Corporation (NASDAQ:MSFT) and Sony to supply custom graphics chips used in their new line-up of consoles Xbox One and PlayStation4.
This deal leads into sustainable long-term revenue which is more than 5 percent of the company’s current sales figures. Following the success in custom graphic chips, Advanced Micro Devices, Inc. (NYSE:AMD) is looking to go full throat into graphics market while taking low-price strategy to beat competitors.
Mobile and desktop CPU
As much as Advanced Micro Devices, Inc. (NYSE:AMD) is more of an underdog in mobile and desktop chip market, the company is raising its position while capitalizing on its operation structure to realize incremental revenue without suffering big operation costs.
While the isolated case of chip supply deal for Xbox One and PS4 may come as low margin business, it is a stepping stone to big business if it can land similar deals with other Internet device makers.
