AMD India shares strategies to garner 26% market share in 2013

Infotech Lead Asia: AMD India on Tuesday announced its strategies to garner 25-26 percent market share in 2013 in computer processing space — consumer and enterprises — in India.

Fuelled by manifesto-driven laptop and desktop businesses across the country, AMD India achieved 20.1 percent market share in Q4 2012, according to IDC.

Vinay Sinha, director-Enterprise Business, AMD India, said: We will continue our beach head strategy to further accelerate our growth in India. The main focus will be on adding more government businesses, adding more reseller partners and strengthening association with OEMs.”

AMD’s strategies for commercial (enterprise) market

In commercial (enterprise) segment, AMD India has a market share of 27.1 percent in Q4 2012. For the full year, AMD’s market share in commercial (enterprise) segment was 16.6 percent.

In the commercial desktops, AMD India has a market share of 22.4 percent in the fourth quarter of 2012, while its share in commercial laptop market grew to 31.4 percent.

AMD’s Vinay Sinha says that every third notebook sold in India is powered by AMD.

The company works with Acer, HP, HCL, Lenovo and Wipro for capturing market share in commercial computer space. However, AMD is yet to open its accounts with Dell.

In the last 18-months, several state governments announced plans to buy desktops, laptops and tablets to attract voters. AMD India calls this as manifesto buying. “65 percent of the growth is coming from manifesto buying,” Sinha added.

AMD India’s commercial business currently generates 45 percent revenue from large enterprises; commercial / SMEs contributed 40 percent, while the balance 15 percent comes from small business or SOHO segment.

In H2, AMD India will have tablets to focus on. In fact, both Intel and AMD did not focus on tablet business for a long time. Tablet business is growing in India.

On Tuesday, IDC said smaller and lower-priced tablets will fuel the market to achieve 190.9 million units in 2013. As per IDC’s revised estimates tablet shipments will be upwards of 350 million by the end of 2017. One in every two tablets shipped this quarter was below 8 inches in screen size. Smaller tablets will continue growing in 2013 and beyond.

AMD India is looking at increasing channel presence to 84 in 2013 percent from 19 at present.

AMD India’s strategies in consumer space

According to IDC, AMD has captured 14.4 percent market share in the consumer notebook market in Q4 2012 from 3.1 percent in Q1 2011.

Chandrahas Panigrahi, country manager, Consumer Business, AMD India, said: “AMD’s new APU technology combining processing and graphic capabilities position AMD in the sweet spot of the market. The brand awareness toward AMD branded products is growing in India among youth who look for graphics.”

To boost AMD India’s consumer business, the chip major has 1400 retailers and 50 big partners. “We created an eco-system called Warlords. It is giving us result. At present, 50 percent of Flipkart sales is on AMD,” Panigrahi added.

AMD’s consumer team has 35 people with direct present in 26 cities at present. Expansion plan in India in on despite AMD’s plans to cut jobs globally. AMD’s India growth will be need-based.

AMD — in the past 2-3 years, identified gaps in prices of several product ranges. “We tried to fill in these gaps and succeeded in convincing our consumers and channel partners. Our education program for partners is also fuelling sales growth,” Panigrahi added.

But AMD globally has a different picture to share. AMD reported revenue of $5.42 billion, an operating loss of $1.06 billion and a net loss of $1.18 billion in 2012.

Announcing Q4 result, Rory Read, AMD president and CEO, said: “We expect to deliver differentiated and groundbreaking APUs to our customers in 2013 and remain focused on transforming our operating model to the business realities of today.”

AMD’s growth in India is primarily driven by opportunities in the country. Cost effective laptops and tablets will further accelerate its growth. Absence from smartphone will continue to hit AMD’s global growth.

Baburajan K
[email protected]

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