Why AMD’s Computing Solutions is its core business segment

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Computing Solutions segment

AMD’s (AMD) Computing Solutions segment refers to x86 microprocessors that are used either as standalone devices—like desktop PCs and notebook PCs—or are incorporated as an accelerated processing unit (or APU), chipsets, embedded processors, and dense servers.

To learn how embedded solutions and dense servers provide growth opportunities, please click here.

computing solutions

 

Microprocessors and APU’s are the backbones of the computing world

Microprocessors are important in the computing world. Microprocessors are the “brain” behind the computer. Microprocessors are the computer’s central processing unit (or CPU). This is the most important component that drives a computer’s power and performance.

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With the social, mobile, analytics, and cloud (or SMAC) revolution, digital media’s volume is increasing every day. An accelerated computing architecture—like APU—provides a feasible solution to handle the digital data volume. It integrates a CPU and a graphics processing unit (or GPU) on the same level. This improves data transfer rates between these components. It also reduces power consumption.

APUs can also include video processing and other application-specific accelerators. Intel’s (INTC) Sandy Bridge and NVIDIA’s (NVDA) Project “Denver” are popular APUs in the market.

smartphones computing

New launches

In 2013, AMD launched the A-Series APU “Trinity.” It also launched E-Series APUs for mainstream and ultra-thin notebooks. It launched Elite Quad-Core A4-1350 APU for tablets, hybrids, and small-screen touch notebooks. The new launches target the rapidly growing tablet market. As the above chart shows, among all the computing devices, smartphones and tablets are expected to register the highest growth.

PC market dependence

Computing Solutions revenue mainly comes from desktop and consumer PCs. The PC market faced many challenges. This segment was negatively impacted. The Computing Solution segment’s revenue contribution is declining every reporting period.

Customers provide most of the revenue

Approximately 58% of the Computing Solutions segment’s net revenue comes from five customers. Hewlett-Packard (HPQ) is one of the customers. AMD depends on its top customers to generate revenue. Microsoft (MSFT) and Sony are two of AMD’s other important customers.

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