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AMD has “no plans” to enter smartphone market

While Intel still valiantly attempts to make a break into the mobile and embedded space with its x86 processors, it seems that AMD has already given up the fight even before starting. According to a statement made by the company's interim CEO, AMD has got no plans at the moment about even thinking of making a break into the highly competitive mobile and embedded segement. On a brighter node, it appears that the company's line of Fusion APUs are performing much better than expected.

The market for processors and highly-integrated System-on-a-chip (SoCs) is currently all for ARM and its licensees to take at the moment, and it seems that the status quo is not about to see any sudden upsets, at least in the near future. After all, almost every single smartphone and tablet out on the market today make use of an ARM-based SoC save for a few niche devices that sport full-fledged Atom processors.

Apparently, this current state of affairs is all the information needed to convince AMD that it does not stand much of a chance in successfully breaking ARM's dominance in that market segment. In a statement made by AMD's interim CEO, Thomas Seifert put an end to any further speculation by declaring that the company has no plans to make an entry into the smartphone chip market, even though it has an extremely low power, 1W chip up its sleeves in the form of its Bobcat processor which is currently being used by Acer for its new Windows 7-based tablet.

"We have no intention of entering the smartphone space at this point of time. We are not in the process of developing [a] baseband [chip] and this is a clear statement. There are enough players in the is market that have a hard time earning money," he said, when asked about AMD's plans for the smartphone market at the Goldman Sachs Internet and Technology Conference.

On a brighter note, it would seem that AMD's Fusion strategy might well be starting to pay off handsomely. According to a report on DigiTimes, unusually high demand for the company's 40mm Ontario and Zacate processors is causing supply for the aforementioned chips to dry up. To remedy the issue, AMD has reportedly started stocking up on its inventory levels and placed new orders for more processing capability from TSMC.

Source: PC Magazine and DigiTimes via Xbit Labs

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