AMD to steer clear of mobility market

Dirk Meyer says tablets wont cannibalise traditional PCs
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AMD CEO Derek Meyer said that the chipmaker does not foresee an entry into the smartphone/tablet market in the near term.

Speaking to an interview with CNN Fortune, Meyer said that the company considers technology capabilities which present "really big opportunities" and that the largest of those remain in the PC and server categories. Meyer also said that chips which process content would remain a larger market than smartphones.

The AMD boss also said that the PC and server market would continue to experience growth in revenue at a faster rate than the smartphone market. Meyer also said that AMD found the lack of competitors in PC and server markets attractive versus mobile chip makers such as Qualcomm and Broadcom. "I'd rather focus on the big market, where there's a small number of competitors," he said.

Meyer did, however say that he believed AMD would not ignore the long term evolution of computing towards mobility and said that the company is ensuring that it is developing technology that would address these markets.

Yet Meyer also denied that the tablet and smartphone markets would cannibalise from PCs but rather they would expand the total size of the market. The PC will continue to be a device that people will use to create content, whether it's media content or my daughter doing her homework," he said.

Meyer pointed towards the netbook market which had been mooted as a replacement for notebooks where as in actual fact the netbook market is now 20 per cent of the notebook market and largely by growing the market. Meyer did say he thought there would be overlap between netbooks and notebooks with 80 per cent per market expension and 20 per cent cannibalisation.

"We view the tablet market as something we'll enter when the market gets big and we have the resources to appropriately address it."

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