AMD Launches New APUs To Spur Its Processors Demand

AMD (NASDAQ:AMD), which manufactures and markets microprocessors and graphics processors used in PCs, servers and gaming systems, announced its third generation low-power mobile APUs codenamed Beema & Mullins. The new mobile APUs feature newly-designed x86 CPU cores, industry leading AMD Radeon graphics and a hardware-level data security solution based on the ARM Cortex A5, the first-ever ARM-based security solution on an x86 processor.

AMD’s new APU lineup aims to build on its leadership in graphics across devices, including tablets, 2-in-1s, and ultra-thin notebooks. The company claims to have established a strong growth momentum in the low-power mobile computing market in 2013 and aims to build on the same with an updated product portfolio. Tablets, laptops and hybrids based on the new chips will start shipping during the second half of this year.

Our price estimate of $3.66 for AMD is at a slight discount to the current market price.

See our complete analysis for AMD

The Beema Platform Aims To Spur PC Demand

Beema is based on an improved version of the Jaguar core and consumes a maximum of 15 watts of power, much less than its predecessor. The new platform is expected to deliver up to 104% higher productivity performance per watt when compared to the Kabini platform. ^[1] The chip also boasts improved CPU and graphics performance.

Though AMD has significantly lowered its dependence on the PC market, it continues to derive a considerable portion of its revenue from the segment (including GPUs and APUs). It intends to focus on growing in segments where it is underrepresented, such as the commercial PC business. It claims that its new mobile APU is an ideal choice for consumer and commercial client devices alike. AMD shipped over 80 million APUs between 2011 and 2012. The company expects shipments to rise to 150 million in 2014 and cross 300 million within a few years. ^[2]

Mullins To Offer Better Productivity & Performance Than Temash

While its competitor Intel estimates its tablet chip shipments to reach 40 million by the end of 2014, AMD has yet to make a significant mark in the segment. Much like its predecessors, the Hondo and Z-01 tablet chips, AMD’s first quad-core x86 SoC, Temash, failed to expand its presence in the tablet market. AMD’s new low power APU platform, codenamed Mullins, is expected to deliver up to 139% better productivity performance per watt compared to the Temash platform. The company claims that the tablets will be faster, have better graphics and deliver longer battery life with Mullins.

Intel is providing subsidies to tablet makers for using its x86 chips. Since AMD does not have significant resources to match Intel’s move, it is focusing the Mullins chip in Windows tablets and hybrids in models above $200.

We think AMD has a long way to go before it can effectively compete with Intel and established ARM players in the mobile computing market.

See More at Trefis | View Interactive Institutional Research (Powered by Trefis) | Get Trefis Technology

1. AMD 2014 APUs to Deliver Leaps in Performance and Battery Life in Tablets, 2-in-1s and Notebooks, AMD Press Release, November 13, 2013 [↩]
2. AMD Next-Gen ‘Kaveri’ Chips to Ship to OEMs This Year, eWeek, November 11, 2013 [↩]