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AMD's Intel lawsuit reveals worrying situation
With AMD posting its six consecutive quarterly net loss last month amid continued market share losses to Intel, it’s no secret that the company has quite a rough path ahead of themselves. Now, AMD is revealing further details about the dismal state of its finances as part of a court filing that will be used in an antitrust suit that the struggling chipmaker is mounting against Intel.
The brief says that AMD had 13 percent of the processor market by the end of 2007 and that it needs to double its market share in order to “operate long term as a sustainable business.” The company points its finger at Intel as to why it might be nearer to bankruptcy than ever before, alleging the chip giant gave special treatments and monetary incentives to computer manufacturers to use their chips.
The lawsuit, if sustained in court, could potentially allow AMD to demand substantial monetary damages from Intel. Such claims, however, could also backfire and further spook corporate customers already wary of the company’s financial troubles.
The brief says that AMD had 13 percent of the processor market by the end of 2007 and that it needs to double its market share in order to “operate long term as a sustainable business.” The company points its finger at Intel as to why it might be nearer to bankruptcy than ever before, alleging the chip giant gave special treatments and monetary incentives to computer manufacturers to use their chips.
The lawsuit, if sustained in court, could potentially allow AMD to demand substantial monetary damages from Intel. Such claims, however, could also backfire and further spook corporate customers already wary of the company’s financial troubles.
User Comments (4)
Post a comment| jbs1951 on May 10, 2008 12:18 AM | It's all about money. If you can't sell a fast processor for an affordable price, it's bye bye. Bye bye AMD.
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| 9Nails on May 11, 2008 12:41 AM | Well, if Intel made some deals with Dell or HP to include an exclusive contract for chip production, then AMD has ground to stand on. But, if this is just consumer demand for the lower-power higher performing processor, then no court can over-turn that decision. I like AMD and wish them luck, but this seems desperate.
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| Night Hacker on May 12, 2008 1:18 PM | I remember when AMD was the best CPU for overclocking. I still have a 1700+ that I can overclock to 3200 with no problems. But suddenly they put a stop to that with lame excuses as to why. Plus, to be honest, I haven't had a need to upgrade my computer, I can't get a newer AMD anymore for my older motherboard, I would need to buy a whole new system. I'll just lower my quality settings and save my money. 
I still love AMD, but, better make them for users (fully overclockable), priced for users.
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| fullmetalvegan on May 14, 2008 11:44 AM | Yep, at this rate, it's goodbye to AMD - one CPU available only, Intel.
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