At a time when desktop personal computers (PCs) are being written off, US chipmaker AMD is still betting big on it.
Despite consumers swaying towards the more sleeker and lighter devices such as laptops and tablets, AMD says desktop PCs will be the company’s priority and it is not planning for chips and graphics for devices like smartphones.
Ravi Swaminathan, Managing Director and Regional Vice-President – Sales and Marketing, AMD India, shares more in an interview with
How has AMD India grown in the recent past, especially with Intel doing big campaigns on its Ivy Bridge and others?
AMD India had the most successful year ever this year. We have grown at 12 times the market. The market has grown about 3.8 per cent. One of the things which we have been able to do is to have partnerships with a large number of original equipment manufacturers (OEMs) – whether it is HP, Asus, Samsung, Sony, Toshiba – they all are carrying our products. Also, strong system integrators for desktops and the local OEMs such as HCL Infosystems and Wipro.
Historically, Intel is very good at chip manufacturing and Nvidia for graphics. AMD is the only company with both chips and graphics. So, we bring them together at affordable prices. We are seeing the ultra thin as a strong factor, but Intel’s ultrabooks are typically at non-affordable kind of price.
How about margins? Are you able to maintain that?
The margins are good, but the challenge today is how you open up the market. Challenge in India is that with PC penetration being what it is, it is more critical for us to open up markets and clearly from India perspective, penetration of Internet is just 11 per cent even in a boomed market.
How strong is your position in ultrabooks?
One of the things which I believe very strongly is people are talking about PCs are dead, post PC era and lot of such talk. But, our belief is that we are at the dawn of the PC era and it is just beginning now. What we had earlier were office desktop computers and home computers used by father, mother and children. We are now beginning to have laptops and more such devices as personal computer. Therefore, we believe that the whole PC era is just going to begin and tablet is one form factor, among many. And, as you go forward, you would see more form factors merging. I don’t look at the tablet as a very different product. It is part of the PC market. As we go forward, there will be five-six kinds of PCs – small, smartphone, a big desktop or another two-three that are not conceived yet.
How are you placed against Intel, which had big marketing spends around ultrabooks?
We are quite happy as they (Intel) are creating demand. But, we believe that our product proposition is such that we are able to fulfil the demand, in a sense, it is like what you call classic ambush marketing. I don’t think AMD needs to spend money because the category is getting established. It is good that Intel is creating the awareness for the ‘ultra’ category. Our job is how to fulfil that demand.
Will you develop products for the smartphones segment?
I don’t think we really have a platform in the smartphone market. But, these are fast-evolving spaces. Right now, our focus is to play in the laptop business and look at tablets and how are they adding numbers. Smartphones, probably, it’s premature for us to talk about.