Tomahawk, WI 12/11/2013 (BasicsMedia) – Advanced Micro Devices, Inc. (NYSE:AMD) is $2.71 billion market capped semiconductor manufacturer. AMD makes and sale chips which are used in PCs, smartphones and tablets. Its business nature makes it a direct competitor of Intel Corporation (NASDAQ:INTC).

Both companies have deep roots in the PC market and the decline in that market is spreading woes to their revenues. This is why even as each seeks to retain presence in PC, they are making moves to capture the more lucrative market of smartphones and tablets.

Advanced Micro Devices, Inc. (NYSE:AMD) offers low cost chips and this makes its market concentration to be the lower tier. On the other hand, Intel sells to the upper tier market. Shrinking from PC dependant business to non-PC is the challenge gripping both companies. AMD is finding itself in the corner because it lacks in financial power which the rival Intel boasts of. However, AMD is banking on pricing strategy in growing its customer base and to improve its profit.

The challenge to Advanced Micro Devices, Inc. (NYSE:AMD)’s business that using its chips appear to be more involving compared to Intel’s. In this scenario, the company is having slow penetration. Even so, it has succeeded in keeping its operating expense low through the past quarters. Currently its operating costs are in the region of $450 million according to the Q3 data, down from $600 million that it used to be before.

In the same manner, the company is cut new deals with customers to ensure that its penetration of the smartphone and tablets chip market picks up the pace and allows it to benefit from this multibillion dollar segment.

The company’s resolution is to bring down its reliance on PC going forward. This will ensure that even as PC segment continues the decline, its revenue would experience crippling impact. Advanced Micro Devices, Inc. (NYSE:AMD) wants that by 2015, 50 percent of its revenue will be based on growth.

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