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The number of customers in the direction of AMD custom-made products will increase


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The number of customers in the direction of AMD custom-made products will increase


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POSTER: computer news   ||   THE NUMBER OF CUSTOMERS IN THE DIRECTION OF AMD CUSTOM-MADE PRODUCTS WILL INCREASE

DATE:2016-10-21

From fresh quarterly report AMD , we already know that the proceeds from the sale of "custom-made" solutions company in the sequential comparison grew by 41%, setting a historical record in its absolute value.  The company received in the third quarter up to 64% of total revenues from the sale of "custom", server and embedded solutions.  Components for game consoles Sony and Microsoft were the main "locomotives" of the trend.

Naturally, during the question and answer session on the quarterly conference AMD management could not ignore the theme "customized" solutions, as analysts were keenly interested in the prospects of the development of this business type  .  Lisa Su  was laconic, traditionally referring to the need to protect the interests of clients.  It merely confirmed that as part of the updated Microsoft game consoles and Sony used its "custom" chip manufactured using FinFET-technology.  This Xbox One S, "compact" version of the PlayStation 4 and a full-size console PlayStation 4 Pro.  Proceeds from the sale of "custom-made" products and production volumes are growing for the third consecutive year.  Lisa Su said it is the best proof of the high demand for the AMD graphics solutions on the part of the gaming industry.

In prepared for the event AMD slides twice mentions the intention to involve the use of "custom-made" products of new customers.  In addition to Microsoft and Sony, there is a third client, which  will present their products in the near future - not later than 2017, apparently.  The Japanese manufacturer of consoles has admitted that former Nintendo NX will hit the market under the name of the Switch, and will be based on the NVIDIA Tegra processor.  Secondly, Lisa Su said that AMD third customer in this area is not relevant to the market of gaming consoles.  The company is in talks with new customers, but will disclose the details as they become available relevant products.

Although AMD actively involved in the production of components for game consoles and enables the growth of the gross proceeds, on the rate of profit is negatively affected - the margin for each "custom" product is minimal.  Only AMD successes in the segment of discrete graphics and gaming hybrid processors for notebooks allow the company to maintain the rate of return at 31% in the third quarter.

Reduction of component sales volumes for consoles AMD will reduce revenues in the fourth quarter - by up to 15-21%.  However, the head of AMD believes that will be positive, both in terms of revenue and in the number of sold components "in the average year," business dynamics.  


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