Dec 25

Computers Special: PC’s future is in ...

Rory Read, president and CEO of AMD. provided to China Daily

The US’ Advanced Micro Devices Inc (AMD) has planed to increase its China sales in smaller cities and rural areas because it believes less-developed areas are a future goldmine for the personal computer business, according to its new head.

China’s information technology (IT) industry has reached an important point, with the rise of cloud computing and the government pushing the integration of the Internet, broadcasting, and communications, explained Rory Read, the president and CEO of AMD, a multinational semi-conductor company.

“The next billion personal computer (PC) customers will come from emerging markets, especially China,” Read went on to explain.

And AMD’s China business is crucial to its growth and future success, he said.

Read was appointed top executive in August, when the interim CEO, Thomas Seifert, returned to his original role as chief financial officer. Read is AMD’s third CEO, since 2008.

“I’m really pleased to be joining AMD at this important time in its history,” said the 49-year-old Read. He said he saw the job as a “once in a lifetime opportunity”, a chance to be a part of a technology team at this crucial point in the computing industry.

Read said he does not think that desktops and laptops are going to die any time soon and that the PC market will continue to grow over the next five years, despite the addition of tablet PCs.

AMD teamed up with Chinese PC makers, such as the Lenovo Group, Asus, and Acer Inc to penetrate the country’s smaller cities and even rural areas.

It plans to build a stronger relationship with PC manufacturers by giving them what they need, Read explained.

The company has approximately 2,500 employees in China.

The Lenovo Group, one of AMD’s most important partners in China, and in fact Read’s previous employer, also plans to boost laptop sales in smaller cities and rural areas, according to Tang Jie, its vice-president.

Taiwan’s Acer, the world’s fourth-largest PC maker by sales, expects sales to grow by 20-25 percent in 2012, said Oliver Ahrens, who heads its China operation.

In commenting on this, Read said, “Our APUs and processors will help them gain market share.”

In contrast to its bold strategy in emerging markets, the microprocessor maker announced on Nov 3 that, Reuters has reported, it plans to save about $200 million in operating costs in 2012 by cutting 10 percent of its global workforce and streamlining its internal business processes.

The savings generated by that move will help bankroll research and expansion in areas such as low-power chips, emerging markets, and cloud computing, according to a company statement.

(China Daily 12/09/2011 page14)

Computers Special: PC’s future is in emerging markets, especially China

Dec 02

Samsung says it will sell Windows 8 slate in 2012

Samsung plans to start selling touch-screen slate computers running Windows 8 in the second half of 2012, according to Bloomberg.

Uhm Kyu Ho, head of sales and marketing at Samsung’s personal-computer business, told Bloomberg that the slate will probably be a modified version of the current Series 7 tablet, which has a touch screen and a wireless keyboard. [Updated 8:03 a.m. to clarify: the Series 7 tablet can be purchased as a tablet on its own, or bundled with keyboard, dock and digital stylus.]

Several companies, including Samsung, Acer and Asus, have already produced tablets running on Windows 7. but Windows 7 is not optimized for touch and for tablets, as Windows 8 is being designed to be.

Samsung’s Series 7 is currently being targeted at business users who need to produce documents and spreadsheets, Nam Seong Woo, head of Samsung’s PC business, told Bloomberg.

Nam said Samsung plans to offer an update to Windows 8 for Series 7 owners but did not specify when.

Several other PC makers, including Dell and HP, are also reportedly planning to produce Windows 8 tablets by the third quarter of 2012.

Samsung says it will sell Windows 8 slate in 2012

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Oct 16

Amazon’s Kindle Fire Means You Should Sell, ...

Wait, what? on Wednesday, Amazon launched a $199 tablet computer positioned to steal customers away from Apple‘s iPad, suck users away from Netflix and Blockbuster and into Amazon’s formidable online media stores, and potentially aggregate data about the world’s web-browsing habits.

And Brian White at Ticonderoga Secuties says you should sell Dell, which isn’t big in any of these businesses. Dell, you know, the Round Rock, Texas vendor of PCs and servers. do they even have an online book store? (Let me check… Um, no). okay, so they do sell tablet computers and digital music, but neither are a big part of Dell’s business, yet. So what gives?

The personal computer business, apparently. just over half of Dell’s second-quarter revenues came from the PC market, a market White says will suffer from “tablet cannibalization.” Don’t expect Dell’s Streak tablets to grab a lot of share here, White argues. Apple will dominate the high-end of the market with the iPad, and Amazon’s 7-inch KIndle Fire will “make life very difficult for non-iPad competitors” at the low-end of the market, White writes.

Meanwhile, all the markets where Dell does well are about to get smaller, White argues. Consumer sales made up 19% of Dell’s second-quarter revenues, large enterprises 29% of revenues, small and medium businesses 24% of sales, and the public sector the remaining 28% of Dell’s revenue pie. White argues it’s just a matter of time until the public sector — which generated 34% of Dell’s operating income — ‘finally collapses,’ that ‘the consumer has left the building,’ and grim news from companies selling gear to big businesses doesn’t bode well either.

In other words Dell is looking good everywhere that’s looking bad. In a “tough market,” the result won’t be pretty. White writes that Dell’s shares could easily trade for less than $10. Interesting theory. We’ll see how it works out.

Amazon’s Kindle Fire Means You Should Sell, Um, Dell?

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