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AMD trys to shake identity as "Intel's Competitor"
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Tuesday, March 18, 2003
Advanced Micro Devices Inc. is attempting to step out of the shadow of rival Intel Corp. by creating demand and brand recognition through the distribution channel.
Later this month, AMD will put the finishing touches on a two-tiered distribution model, in pilot mode the past two quarters, that puts Avnet Inc. at the top of the pyramid as the master distributor of the Duron and other AMD microprocessor lines.
The strategy is expected to provide AMD with additional customer feedback to improve forecasting, increase time-to-market, reduce sales costs, and cement relationships with OEMs.
"AMD is not just an Intel competitor and we need global partners that understand this," said Henri Richard, group vice president of worldwide sales at AMD.
"There is more to AMD than people realize. I want to strengthen our brand presence and programs by rationalizing our channel partners," Richard said.
Recognizing that numerous distributors, resellers, and system integrators worldwide require access to AMD products, Richard has restructured the supplier's time-to-market strategy by appointing a regional vice president to oversee channel and direct sales for the Americas, Europe, North Asia, and South Asia.
The plan calls for the number of direct partnerships between AMD and its distributors to be reduced from dozens to a handful. AMD admitted it has already dropped "several" partners, but declined to identify them and said that in many cases, the relationships are not being severed. Instead, the company has asked certain partners to buy through Avnet, the authorized master distributor, rather than direct.
"AMD is more likely to be involved in the authorization of a subdistributor if the MPUs are sold in trays instead of boxes, because those are more likely to end up in the gray market," said AAC president Ed Kamins. "The high-end products like Athlon will be sold through a more normal distribution channel, but over time that will evolve."
By: DocMemory
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