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Sales AMD Epyc CPUs to increase in third quarter, but data center market is declining

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Jun 6, 2019.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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  2. IIllIlllII

    IIllIlllII New Member

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    If sales decline for whatever reason, you target market share. AMD is poised to gain market share, which still puts them at an advantage over Intel. This means that AMD will lose sales, but gain market share (less impact to revenue), while Intel will lose both sales and market share (greater impact to revenue).

    My company had to do this in 2008 because of a global recession...AMD is having to do this because of stupid China and their IP theft practices.
     
  3. waltc3

    waltc3 Maha Guru

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    In my humble opinion, the US has been in a trade war with China for well over the last two decades, and the US has been losing. On average, the US has lost an average of $500B a year to the Chinese in trade deficits. Prior to this year, China was leveraging an average of ~10% tariffs on US-made goods sold in their markets, while we put on on tariffs of ~4% on their goods sold in our markets. The present US administration has asked the Chinese government for something very simple and very easy to do: drop its tariffs on US goods, and the US would drop its tariffs on Chinese goods sold in our markets in return. (We have also invited the EU to do likewise.) We have also asked China to work diligently to buy more American-made goods so as to eliminate the current trade deficits--which are wholly unsatisfactory. China has thus far declined both invitations. In addition, China has been asked to rectify its current IP policies with regard to appropriating US IP without licensing or payment--practices which have been going on for decades, too. In response, the US has put on much stiffer tariffs until such time as China wants to talk about equalizing these trade imbalances and IP issues. Most of the US media has been asleep in terms of covering this issue, and scant attention was given this matter by previous US administrations, likely because no previous US Presidents had backgrounds in finance and trade. (Obama, for instance, once likened knowledge of economics and trade to be a "magic wand," quote, unquote.) The present US administration is the first administration to actively address these issues--as well as many others.

    I'm not sure, however, how much Intel can blame the China situation for its woes--as Intel problems with production and insecure architectures are well known. nVidia's GPU woes are also easy to understand in an other-than-China context. nVidia has concentrated on the high end and put out non-competitive products on the low end in the < $300 GPU markets--which are the high-volume markets. Server and data markets are very much the high end, lower volume markets, and of course with regard to AMD such buyers are poised to see just what the next-gen EPYCs will bring to the table, imo.
     
    Backstabak likes this.
  4. Clouseau

    Clouseau Ancient Guru

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    US based companies are to blame as well. How does a company sell their stock holders a bill of goods that by allowing 25% of your sales are to an unfriendly foreign country without telegraphing the risks involved. So Intel has no one to blame but themselves. Risk mitigation is part of doing business with foreign powers. If they did not have a plan for this scenario they deserve all that is to unfold. A CFO's primary task is to safeguard company assets. Plain and simple. So blaming China for their IP theft should be focused on why the corporation's CFO's policies were so ill equipped. Fault ultimately lies within the US and we are the whiny child saying it is not our fault even though we allowed it to happen. The current trade policies are not so much to punish those foreign powers but to wake up US based corporations that they need to step up their game. But instead it is a lot easier to point fingers and blame the government for hurting the business. An ill informed public is the best tool on your side when there already is an untrusting nature towards government already instilled.
     
    waltc3 likes this.

  5. JamesSneed

    JamesSneed Master Guru

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    I do wonder if they are miscounting the fact that server sales are declining as companies hold on upgrades until EPYC on Zen2 is released? Sure you have to add capacity if needed but you certainly can hold on upgrade cycles for a few months. I highly suspect this is part of the case and that AMD is going to be better off than this is alluding. Some of these analyst I think are trying to get AMD stock to dip so they can buy in lower.
     
    waltc3 likes this.
  6. Srsbsns

    Srsbsns Member Guru

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    Years and years of Intel and Microsoft just milking it. No wonder people are running to AWS.
     
  7. schmidtbag

    schmidtbag Ancient Guru

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    What IP theft? China made a deal with AMD to license out chips based on Epyc.
     
    rl66 likes this.
  8. waltc3

    waltc3 Maha Guru

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    Yes, looking for scapegoat excuses so as to "explain" why business is off is commonly used by companies...;) There seems to be an unwritten law that a company never admits it engineers its own bad quarters without help from the outside! Always has to be someone else's fault, etc.
     
  9. IIllIlllII

    IIllIlllII New Member

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  10. rl66

    rl66 Ancient Guru

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    To have worked a lot with China, i can tell that you have the same % of theft in EU than in China.
    If one have those practices, it's not the rule for everyone (hopefully).
     

  11. Clouseau

    Clouseau Ancient Guru

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    Corporate espionage is not a new thing...been going on for ages. Press just knows how to riel everyone up over old goings on.
     
  12. schmidtbag

    schmidtbag Ancient Guru

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