Chapter 1402 – Changes to the market share
Intel’s Chairman is furious and fired the Deputy President who had led the team to China. The reason is he had brought shame to the company.
How can you trip when walking off the stage?! Even if you tripped, why do you have to kneel in front of AMD’s representative in front of the reporters?! You had disgraced Intel!
That Deputy President was the one who suggested using several products to compete with AMD to show Intel’s superiority.
In the end, it was AMD who won in almost all categories, and Intel had become their stepping stone!
Things might not be so bad if they did not accept the challenge. That Deputy President should be fired for his suggestion.
This outcome had embarrassed Intel and raised AMD’s status. Immediately after the competition, Intel’s shares plunged by 5%.
5% is equivalent to a few billion USD for a company like Intel! All the shareholders had suffered massive losses.
Other than share prices falling, some factories had canceled their orders with Intel.
AMD’s products have better specs and are much cheaper. Why would they buy Intel’s products? AMD had announced the prices of their products during the competition and caught Intel off guard.
AMD’s reputation had increased a lot after that competition because of the media’s attention.
AMD’s brand quickly increased its awareness and positioned itself in the consumers’ minds.
The advertisements from PC manufacturers changed. They used bold prints to announce their PCs are using AMD’s CPU in their advertisements.
Only Intel had enjoyed such privilege before the competition!
…….
“Luckily, our production plant in China had started operation. If not, we will not cope with the sudden surge of orders.” AMD’s Asia Pacific President, Yi Tianming, said.
Yi Tianming is a Canadian Chinese. He studied in China before high school and continued his studies at a Canadian University. His parents are one of the earlier batches of workers going overseas for work.
Yi Tianming joined AMD after he graduates as a technician. He worked his way up to become Asia Pacific Regional President, and he is only in his thirties.
Yi Tianming knows he can become the Asia Pacific Regional President is because he is Chinese and can speak Mandarin. He had not expected Mandarin will become his biggest advantage.
“It’s good to have more orders. This means consumers have acknowledged AMD, and we are successful. Although we spent more than 100 million USD to promote AMD after the competition, our returns are much higher.” Feng Yu replied.
Feng Yu did not expect this result. Intel’s representative’s fall is a great help to them.
The Chinese DIY PC consumers only buy AMD motherboards after the competition.
The consumers know Feng Yu has a stake in AMD, and he made large donations in China annually. Many of them benefited from Tai Hua Education Fund. Which school in China doesn’t have a Tai Hua Building?
If they don’t support Feng Yu’s companies, who will they support? Intel has never donated to their schools or given them scholarships.
Furthermore, AMD’s motherboard has better specs.
Other than Lenovo Group increasing their orders, many other manufacturers ordered from AMD. They even paid the deposit.
Some Japanese PC manufacturers, also Feng Yu’s haters, made a large order with AMD.
Intel quickly implemented emergency measures to salvage some of the orders. But it caused their profits to fall. It might even be lower than AMD as AMD’s production cost is lower than theirs.
Suddenly, AMD made a shocking decision. AMD’s motherboard will use Nvidia’s graphics card slot. This slot is different from Intel and ATI.
Nvidia had made changes to their slots when they have overtaken ATI in the past. Although Intel is unhappy with this decision, Nvidia’s graphic cards have better specs and lower production costs. This forced Intel to produce motherboards that fit Nvidia’s graphic cards.
Now, AMD stops producing motherboards compatible with ATI graphic cards and switches to Nvidia’s standards. This means both companies have reached an agreement.
Of course, these two companies had only changed their graphic cards slot. They must still be compatible with Microsoft operating system. Because of this reason, Microsoft and other software companies did not get involved.
Regardless of how hardware companies compete, they will still need software. AMD, Intel, and other hardware companies, still have to sign agreements with Microsoft!
Microsoft and other software companies can stay out of this, but those PC manufacturers had to face it. If they use AMD’s motherboards, they can only use Nvidia’s graphic cards in the future unless ATI changes their card’s size.
ATI is going crazy. This is discrimination against them. Although ATI had lost part of their market share to Nvidia, their market share is about the same now.
AMD’s decision will have a devastating impact on ATI’s graphic cards sales.
ATI had lots of orders, but their factories had to cut production after the announcement.
Luckily, AMD did not make other changes to their other components’ ports. Or else, the whole industry will be in an uproar.
Targeting ATI alone is fine. All other hardware manufacturers would target AMD if they made other changes.
Nvidia forecast their sales and profits will have a significant jump this year, and their market share will rise above 50%, making them the market leaders!
No one had expected a simple technology competition can cause big changes in the IT industry. Lenovo Group, which was one of AMD and Nvidia’s earliest partners, will launch their latest PC.
At this time, Intel started to sue AMD.