AMD avoids tablets, despite admitted success of the iPad

AMD avoids tablets, despite admitted success of the iPad
AMD CEO Dirk Meyer recently admitted that iPads have cannibalized both netbooks and regular laptops. He also warned that the degree of cannibalization was unclear: "Clearly, in the last quarter or two, the tablet has represented a disruption in the notebook market...If you ask five people in the industry, you'll get five different answers as to what degree there's been cannibalization by tablets of either netbooks or notebooks."

He went on to say that the high price point of the iPad has almost certainly deterred consumers from upgrading their laptop, when they've already spent so much on Apple's iPad. This admission of the iPad's success would lead us to believe they would want in on the action.

Contrary to what we expected, AMD also announced that they have no intention of breaking into the tablet market: "Frankly, we're still so small in the notebook market that given all of the opportunities in front of us it doesn't make sense for us to start turning R&D dollar spending towards the tablet market yet."

While we would obviously prefer the widest competitive field of tablets possible, we respect their cautious approach. Their caution stands in contrast to Intel, which is diving into the tablet market head-first. With the rapid success of the iPad, and the approach of Android and Windows 7 tablets, AMD might want to consider a slow approach, rather than an outright lack of development. They could be on their way to regretting not jumping in while they could.

Their hesitation might be related to their third-quarter loss of $118 million. Perhaps they want to avoid diving into a tapped market, while they could focus on improving their existing market offerings. AMD's position is also somewhat surprising considering earlier rumors that AMD and Apple might be collaborating on future devices.

source: Reuters via AppleInsider

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1 Comment

1. uk786

Posts: 47; Member since: Dec 30, 2009

AMD is great would love to see them in my phone.

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