AMD is taking a gamble by trying to move up the market in grabbing the major share in the sluggish PC market. AMD's USP is Lower price + Performance against Intel's high priced and brand equity. The PC market is on the saturation curve and its high time some one comes and shake up the curve to get it move up slowly. AMD going in for its own branded PC may be the right way to start penetrating the market and getting noticed. AMD has a great product, has the attractive pricing...its promotion and distribution seems to be the only problem. The only way to shake up the market is to find an alternative operating system and move away from microsoft as each microsoft product adds up a fortune on those systems. But getting a new OS off means fighting against the network externalities enjoyed by microsoft. AMD has solved one part of the problem by squeezing in the price and bringing it a tad down. I had come across one service where the operating system was a stripped down one and all those additional applications were hosted on a remote server and was into some sort of pay per use. I still dont understand why all these damn desktops and laptops come loaded with so many applications which suck up the Ram. The only way to reduce money and make these price elastic consumer turn heads is to make computers similar to TVs and go in for revenue in opening up various e-commerce fronts like movie downloads, internet shopping et al. Thats the only way any price penetrator can take the PC market by storm. It must be similar to mobile phones thing ... give the set at a subsidy and make money on subscriptions in such a way that the subsidy is taken care of and the profit margin is on par with the company's objective. Its high time these computer manufacturers get a way to project computers as a simple but great gadget which is affordable. Atlast if only those people think like me :D
Monday, April 28, 2008
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