Computer chip manufacturer AMD’s global revenues and net incomes have been down over more than a year but the Indian arm of the Sunnyvale (California)-based company wants to be the number one player in the next few years.
The company’s global revenue in the first quarter (ended March 31) came down to $1.09 billion from $1.59 billion in the corresponding quarter last year. It has also been reporting net losses for each quarter in the last one year. The company reported a net loss of $146 million during the first quarter against a net loss of $ 590 million in the same period last year.
But in India, the company that provides products to various hardware manufacturers, wants to paint a different story. AMD is expanding its reach in a market that is dominated by Intel right now with more than 80 per cent market share in personal computers space. “We are looking at bringing a broader range of products with most original equipment manufacturers (OEMs). If an OEM is carrying 5-6 of our products, that is good enough to cover 80-90 per cent of the market,” Ravi Swaminathan, Managing Director and Regional Vice-President - Sales and Marketing, AMD India, told
He said between 2011 and 2012, AMD India has built into a strong company and done some restructuring by hiring the best talent in the industry.
The company is spreading its products portfolio to not cover all price points and incentivising the channel partners to add more value to customers.
“On the enterprise part, the best example is from the latest UP Government’s project of 1.5 million laptops through Hewlett Packard India. We hope to get such projects in future in the Government sector,” Swaminathan said.
According to analysts, because of such projects, AMD India’s market share rose by 50 per cent in 2012 compared with 2011 and this year it is expected to go further up.
“AMD’s shipment share in the India PC market increased to 15.3 per cent in calendar year 2012 from 10.8 per cent in 2011 and is expected to grow by 20 per cent this year because of winning the UP laptop deal and owing to increasing market acceptance,” Kiran Kumar, Research Manager, IDC India, said.
He said AMD has found increased installed base since introduction of its Accelerated Processing Units in 2011. They’ve also picked up key wins, especially among large corporate and Government segments.
“They continue to focus on driving new form factors like slim notebooks, hybrid PCs, AIOs and tablets through a good product mix positioned across different price bands, which has enabled their success in the recent past,” he said.
However, Kumar said replacing Intel from number one position would be a tough job in the immediate future.