But what is the root cause of this problem? It is true that AMD has failed for the last several launches to make a product that can compete head to head with Intel. After going from the days of having a slower clocked yet faster CPU than Intel, AMD is now asking for a Price to Price comparison. Oddly enough their CPUs are the ones that are slower per clock now and there is no end in sight.
Why is all of this happening? Well According to Theo Valich it is due to extremely poor leadership. While we all know that AMD paid far too much for ATi (about twice what ATi was actually worth) and it promised too much wealth to its CEO (Hector) we do know it has some great minds in there that can make fantastic products. But there does not seem to be anyone at the top capable of leading them back to profitability.
Even Dirk Myer, the man who many hoped would turn the company around cannot be taken seriously when he remarks that netbooks will fizzle out in a couple of years. I am reminded of the mistakes Intel made in holding onto the NetWurst (Netburst) Marchitecture during the awful days of the Pentium 4. Maybe AMD needs to take a look at its line up and let some fresh ideas in.
Read more here.
People that were allowed to ask a question once more failed to ask the tough questions, and one must wonder what the heck is going on and why nobody dares to the really rough questions, such as whose responsibility was that a company that invented netbook market failed to cash in on the deal, why did AMD pay 5.4 billion USD for the company which now values at 2.1 billion USD, or roughly twice the market cap of the whole company (ok, "roughly" - AMD's mkt cap is 1.23 billion USD).
Personally, I am saddened at the fact that AMD slept on its laurels for too long with 90nm procesors and that some of brilliant people, people that created the success in commercial market for the first time in AMD's history - are no longer at the helm of the company. Seeing AMD now is just a pain - so many good people work night and day and create truly great products, but the management just isn't there. AMD's management should be on court to explain to its customers and shareholders who is responsible for losing 7 billion dollars in the past nine quarters and stock dropping from 46 USD to less than two dollars! One must ask him/herself...when is AMD going to wake up and smell the coffee? AMD should be headed by Dave Orton and S&M division should be lead by Henri Richard.
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