Running Head: FUTURE OF INTEL AND AMD COMPANIES 1

Future of Intel and AMD Companies

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Introduction

In the current world, the difference or similarities between the two products can

determine the success or failure of a business. Many times, companies usually think about their

brand and pay a little attention to the competitive dynamics (Ch.7) of their rivals. Companies

within a similar line of production need to look at the differences and similarities of products

offered by competitors. In this regard, the old-problem of brand vs brand does not apply when it

comes to computer processors. The fact of the matter is that electronics manufacturer is the

greatest rivals of branded products, although they operate the same. When one has to choose the

type of processor to buy, the two main choices that exist are Intel or AMD (Villa-Boas, 2018).

These two companies product function the same; they turn PCs, making them work. Most

customers consider various factors when deciding which products between the two brands are

the best. For example, an individual intending to buy a processor for his/her computer must

determine the amount of money to spend and the best processor that suits the computer's

function. Lastly, one has to know the prospects of the company and which shows better future

growth. What are the companies' corporate-level strategies (Ch.6) in the coming years (Rowland,

2017)? This paper focuses on the prospects of AMD and Intel companies.

Business profile

Advanced Micro Devices (AMD) is a multinational corporation whose headquarter is in

California. The company has been conducting its operation for over 50 years. The AMD

segmentation of the market (Ch.6) revolves around the production of computer processors before

they are made available to customers. The company's main products include microprocessors,

work stations, personal computers, and motherboard chipsets. The company's business-level
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strategy (Ch.6) involves providing better services to customers, an approach that has made AMD

have loyal customers that are hesitant to buy products from other competitors.

On the other hand, Intel Company is also a US-based multinational organization based in

Santa Clara, California. Like AMD, Intel Corporation deals in the production of microchips for

laptops and computers. Globally, Intel is ranked as the second-highest manufacturer of valued

semi-conductors chips (Phillips, 2016). The company is second after Samsung in the number of

employees and revenues, but Samsung has won in this market commonality (Ch.6). Intel is

trusted by Lenovo and Dell companies to deliver processors for their computers. Besides, the

company also makes products such as integrated circuits, graphics chips, and flash memory.

Usage

When an individual decides to buy a car, the first question is, what will it be used for?

Some of the functions that a car can serve include family vacations, work runs, long drives, and

sports. The same applies when deciding whether to select AMD or Intel when it comes to

processors. Both can accomplish the same basic tasks, but what is going to be done with the

computer? Jarred Walton, in the article AMD vs Intel: Who makes the better CPU, gives a very

in-depth knowledge into which company is putting out better products, but he concludes that it

often comes down to usage. Even if the price is a differentiation strategy (Ch.6), an individual

won't purchase a gaming processor out of a basic Intel 8th Gen core I3 processor (2019). Intel

offers the competitive edge when it comes to single thread core power, as well as most Intel

processors provide the on-board GPU, were as a lot of AMD processors don't have that option

(Smith, 2019) There is a lot of business out there and many have different computing needs.
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Basic office computers don't need any great performance or power, just for the system to

work. Both companies handle the basic need of a computer well, and when selecting based on

basics, it will come down to price, and size of computer as to which motherboard and CPU will

fit (Analytics Insight, n.d). What if you are a photographer? The processing power of photoshop

or any other rendering program is important to the company and the ability to edit and process

customers' orders quickly. In the article Best CPU for Photo Editing and Graphic Design 2018,

the conclusion between the two companies is that the new Ryzen 3 CPU's from AMD a better

bang for anyone's back, but as mentioned earlier, if the computer is looking to use single-core

performance over multi-threaded, then Intel would be the way to go (Ward, 2020). As a photo

editing company, the usage of multi-threads or single thread power needs to be researched before

settling on one product. TurboFuture (2018) argues that it should come down to whether one

needs more cores of the Ryzen Threadripper or whether a single-core performance is enough

(Alcorn, 2020). Most companies don't care about the core count or speed on a computer because

it must fit the budget, but for those few select companies, like video and photo editing or game

developers and servers, decide whether you need that multi-core performance and go from there!

Benefits of an Intel Chipset

As stated above, Intel chipsets currently dominate the business laptop market.

Additionally, some companies are starting to push towards using laptops over dedicated desktops

because it decreases the astronomical cost of supplying two computers. From a buying

standpoint, Intel is superior (Alcorn, 2020). Intel is the best choice for a business platform

because of its wide range of chipsets for almost all applications. According to Shepherd (2018),

the number of models produced by Intel, the AMD-powered variant, does not stand a chance in
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future processors because its model is already in the market. That being said, AMD chipsets will

continue to innovate in the coming years, as seen with their Thread ripper chipset's success.

When considering AMD chipset for a business desktop application, a few items are worth

noting. According to Domash and Domash (2011), AMD's chips are competitive technically with

Intel's, but AMD has to undercut Intel's multimarket competition (Ch.7). The gross margins of

Intel tell that the company enjoys a competitive advantage within the industry. Studies show that

companies with higher gross margins like Intel are due to low production costs or higher prices

(Domash & Domash, 2011). As previously stated, Intel leads the chipset market, and consumers

are willing to pay for a better-perceived product. Since Intel is driving, they also have the

available resources to help support their products. AMD also stands behind their products; they

did not get the size that they did without that, but just not on the same level as Intel (Chauhan,

2020).

Benefits of an AMD chipset

Although Intel is the obvious choice for a company, AMD does present some advantages

to the business computing market.  "In just price alone, AMD's chips are generally cheaper than

comparable Intel chips." (Smith, 2018)When purchasing one computer, being able to save $30-

$50 on a chipset may not seem like a lot. Still, when a thousand or more processors are being

purchased, then that amount increases significantly. Another benefit of AMD is with its A-series

chipset. "The A-Series chipsets also support AMD CrossFire technology, which uses dual video

cards in the same system" (Andrews, 2019). Most businesses do not need dual video cards in

their system, but those that rely on all the available (Chauhan, 2020). Workstations, although

mostly Intel chipsets are designed to bring peak performance for the best possible graphics at
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every possible moment, thus they would require dual video cards. It is possible to run dual video

cards on Intel, but AMD seems to have better support. Intel chipsets, although efficient, mostly

have a locked clocking speed, whereas AMD chips are easily overclockable with no

modifications besides a BIOS setting change. This is a great option to have, especially with a

business that needs every ounce of power possible, but for most companies, this is not a worry.

Cost comparison

One could spend hours talking about performance, benchmarking, which company has

the best architecture for future growth or planning on getting to the 10nm desktop chip first, but

no conversation will make it far when it comes down to price? For most, price is the driving

factor behind the selection. The different price aspects of each chip allow us to decide which

category of usage we want to fall into when getting a computer put together. Gabe Carey, in the

article "AMD vs Intel: which chipmaker does processors better?" talks about how for the last

decade, AMD has always been the place to shop for the hottest deals on processors (2019). A

low-end AMD chip can cost roughly forty dollars, but a low-end Intel chip can cost close to fifty

dollars. The ten-dollar difference may not seem like much, but in electronics, it shows that

intel's hold better value, and overall the computing community views them as better processors.

` Fortunately for AMD, the company made some changes when it comes to processor

design and released the Ryzen chip over the last year hoping to catch up to the competitive edge

Intel has had on them for the previous ten years, and it seems to be paying off! TurboFuture

describes to us that AMD's new Ryzen 7 1700 chip retails at about $399. That's comparing it to

is close brother, the Core I7-8700K, which retails just over $400. As well the Ryzen 7 1700 has

eight solid cores and sixteen hyperthreaded cores, giving you that multi-thread edge that Intel
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lacks. In comparison, Intel's I7 -8700K only has six solid cores with twelve hyperthreaded

(2018).

When it comes to price, the overarching umbrella is that it ties directly into what you are

planning to do with the processor? As mentioned previously, AMD is better on the multi-

threaded aspect, so purchasing a high-end processor for like server usage, you may get a touch

more performance out of the AMD chips (Business Case Studies, 2019). But even so, for a

standalone computer, whether for a printing facility or a small office desktop, Jarred Walton tells

us that it alone is very easy to make the case to go with AMD's Ryzen (2019). They are more

cost-effective, considering they start at $160 for a basic chip, and Intel's chips are typically about

$25 to $300 more, depending on the model. As great as Intel's chips have been over the last ten

years, consumers are getting to the edge of constantly having to spend to upgrade. As the

progression of technology continues, price is becoming a larger and larger factor as the

benchmark scores get closer and closer together.

Why choose one over the other?

With the way innovation is taking off around the computer world, it is only a matter of

time before the current chipset, whether Intel or AMD, will be considered obsolete. Moores law,

named after Gordon E. Moore, co-founder of Intel, accurately describes the predicament. To stay

up-to-date with current technology, one must upgrade their computers every two years. Most

businesses do not follow this model, though, as it is far too costly and does not yield accurate

results. From a business standpoint, it would be ideal to purchase a chipset, and it offers five or

more years of service before any hassle, but technology is now designed to fail. No company

completely dominates all markets because whatever chipset one goes with will suffice, but it
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comes down to preference. If a company has been using Intel for generations, it would not be

ideal for completely switching chipset manufacturers. Still, there is no figurative line in the sand

for the new business like there used to be. Five years ago, the answer would have been Intel

100%, but not anymore.

The right chipset matters because it represents the type of computer that a business

operates. If a company is fazing out desktops and going with laptops, then the ideal choice will

be Intel. One of the most popular PC's for a business application is the Lenovo X1 Carbon,

which features an Intel chipset and performs flawlessly under all circumstances. For companies

like Oath, they also use Intel processors for their staff, in the form of MacBook Pros. Building a

gaming PC is where AMD shines, but day-to-day operations should be left to Intel.

Recent developments

Intel is ranked well in the industry since it is the second-largest firm in the electronics

market. Thus, it has the potential of attracting many investors because of its excellent

performance. Its products are also of high demand because of the advancements in technology

across the globe. The corporation takes into consideration the preference of clients, thus, meeting

their needs. Furthermore, it differentiates its products and services to make them different from

those of competitors. This increases customers' loyalty in the entity's products hence, increasing

its chances of growth in the future. Besides, ADM has better opportunities for growth because it

mainly targets the consumer market. Therefore, it is likely to make high sales from this market.

Finally, its products are affordable, which gives it an advantage over competitors.

Several changes have taken place in the field of technology. One of these variations is

that people are moving away from the previous heavy products like computers to laptops. It is
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because the latter is portable, and an individual can use it at any place. Additionally, people also

need devices that have high speed to accomplish their tasks on time. This is the reason why

companies like Apple have introduced laptops that have a high speed. Though, the devices attract

a higher price because of their efficiency in accomplishing tasks. Finally, the sellers of electronic

devices must give the purchasers a warranty. The primary goal is to return the item and replace it

with another one if it fails to work well. These developments have enabled the members of the

public to get electronic devices that meet their needs.

The future direction of the industry

The technology industry is likely to come up with new ways of dealing with risks. For

instance, they can develop a means of protecting data from unauthorized access because of

increased cases of hacking. Besides, the industry may also have tracking devices that will assist

in tracking stolen property. This may be necessary to recover expensive items stolen from

individuals or organizations. The measure can help in reducing losses that can be incurred

because of such happenings. Consequently, companies will merge in the future because of

increased competition. As a result, the measure will enable them to enjoy economies of scale.

The future for Intel and AMD is becoming more and more grey as the processing power

of AMD grows every year! But what about other processing industries? Intel has taken the

market for most desktop and laptop processors; AMD has taken the market share for counsel

chips mainly because the few AMD chips that do that have dedicated graphics on-board, offer

twice as much processing power as the intel ones do! AMD and Intel have chosen to stay out of

the smartphone market, and many ask why? Agam Shah talked about how back in 2007, Apple

offered Intel the market to make all the chips for the iPhones (2016). After Intel had failing
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attempts of trying to make what they had already developed so hard into an efficient little CPU,

they pulled out of the smartphone processor industry that was on the verge of taking off and then

turned down Apple.

The chart shows the technology upgrades of AMD.

AMD company needs to invest in transnational strategies (Ch.8). This relates to

companies that try to balance efficiency and local preferences. It is kind of in-between global

strategy and multi-domestic strategy (Ch.7) Intel, and AMD would rely on the same names. 

Implementing this strategy should be a unique shared vision and flexible coordination along with

the commitment. Hence this strategy will benefit Intel if all the circumstances are right, and it
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will produce a high performance as opposed to a multi-domestic or global approach.  This will

also help Intel to compete in the international market as well.

AMD, on the other hand, is finding its niche market into the smartphone manufacturing

by announcing in April that it will be partnering with Samsung to start producing the more

advanced graphics chips for Samsung phones (Sun, 2019). This kind of restructuring (Ch.7) will

help AMD leverage its technology to compete with Intel. The agreement wasn't for production

purposes, but rather they licensed the technology of their Radeon graphics over to them for

production into the phones, allowing them to continue to pull market share from its shareholders

at Intel and Qualcomm by taking this part of the market. As businesses continue to grow, so is

the smartphone market growing larger every year.

Restaurants are taking away scratch pads and moving over to smartphones, and logistics

companies are moving away from paperwork and towards a system designed for employees to

carry around phones, allowing for all paperwork, scanning, and tracking to be done

electronically. As the industry continues to grow, businesses are downscoping (Ch.7) in their

use of laptops, and more tablets are in use. AMD has already taken steps into the market share,

hoping to gain some traction before the use of large processing computer starts to decline in the

business world. Much of what we know is going to be less driven by desktops in businesses and

more by servers with smartphones and tablets having access to those servers.

Besides, technology corporations should consider other issues that can affect their

operations. For instance, they must use the property rights laws to safeguard their products from

duplication. The measure is necessary because of many entities in the market manufacture items

that are similar. Finally, these companies must also observe the law where they carry out their
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operations. This is because these regulations differ from one country to another. Also,

functioning within the rules will ensure that the entities continue with their activities smoothly.

Therefore, they can manage to limit conflicts with the workers, stakeholders, and the government

in their area of operation.

Conclusion

Which company produces a better processor for business? The best way to answer this

question is based on the way one wants to use a computer. A moderate computer from either

company can be built for several hundred or lower. The true distinction of each company comes

down when you reach the more powerful processors, but even as mentioned earlier, the grey area

between which processors are better is growing large and may also be siding towards AMD

simply because of cost. As well, with the smartphone industry taking off, both Intel and AMD

are doing there best to hold their market share, while trying to get involved somewhere, simply

because businesses have shown that things like social media and marketing are changing the face

of electronics. This doesn't mean that desktops by any means are going anywhere, but rather

electronics are evolving as they always do, and both Intel and AMD are going to have to change

with it to fit the business needs, or many businesses out there will find it somewhere else.

Being able to accurately decide between AMD and Intel chipsets in a business

environment requires the IT department to assess the usability requirements of their staff

accurately. In a corporation where laptops are predominately used, it would be ideal to go with

an Intel chipset, but in a gaming design corporation, it would be better to use AMD. Most

companies that are in the market for machines to do basic tasks like check emails and use basic

programs will end up going with the cheapest system possible and lease it from a company, but
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for the business that cares, the decision is not easy. Choosing one chipset over the other will

determine what type of computer is used and what reasons it is being used, and this is a decision

that will affect ALL staff. Intel offers a broader range of chipsets when compared to AMD, and

with them being industry leaders, they have the most knowledge of what will be right for a

corporation. Also, since they are a larger company, they can offer more support. More support

means that it is less downtime for the business if an issue were to arise and evokes the peace of

mind, knowing that the company made the right decision.

Only in the next ten years will everyone see where both Intel and AMD plan to take the

large processor manufacturing and with both companies shooting for the 10nm mark in the last

year but falling short on a stable product. Both companies are finding that producing a small and

smaller processor is proving harder than thought while keeping the cost down so the average

consumer or business can purchase them. If either manufacture makes the chips too expensive,

the decline in new sales will fall, leaving room for another competitor to take the spot. Only the

future will show us what holds for AMD and Intel and which company will produce a better

product.

References
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