AMD (AMD) is about to launch it new chip for laptops. It will be helpful to consumers who want extra-special graphics and should help save battery power. AMD’s share of the laptop market is now around 14%. That has been falling.
AMD’s chipset is unlikely to change that. Investors don’t think much of the company’s prospects. Its stock is off about 75% over the last two years, and its still sports $5 billion in debt, mostly from is disastrous takeover of ATI.
The new product melds together several features that AMD hopes will make it a tool for resurrecting the company. According to The Wall Street Journal "The combination of chips is particularly good for entertainment applications that are driving many laptop purchases."
Since AMD has so little of the market, it is not a lock that new chips can get it back market share. It may have to resort to aggressive pricing, a move that a company with low gross margins can hardly afford.
In a world where balance sheet strength is an important as products, AMD is a quart low.
Douglas A. McIntyre
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