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AMD set to struggle to meet demand for ATI Radeon HD 5800 series

by Willy Deeplung on 21 September 2009, 15:23

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qat3m

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Bloated budgets

Realising the pot has boiled over, AMD has rushed to turn the down the gas with a dismissive "okay so it'll take a supply couple of weeks to fulfil [demand]" but we wonder what this situation will do for the confidence of those hungry customers left to bang their cutlery impatiently on the table.

Our intel (no pun intended, this time) is that EMEA demand alone for the Radeon HD 5800 series could be in the region of 40,000+ units. With AMD now having to service a larger number of AIBs than it used to, thanks in no small part of the popularity of the HD 4800 series and NVIDIA's attention being focused elsewhere, their appetites are unlikely to be sated by the nouvelle cuisine AMD puts before them.

Left picking at his limited allocation, one famished patron seemed resigned to their fate. "Well, with any big launch there's never going to be enough, but..." the emaciated AIB managed to croak.

If cash-flow has been a factor in AMD not being able to meet initial demand for 5800 series, maybe AMD will want to review the budget it allocated to the launch of these products. While Europe hosted an understated and, initially at least, sober affair at wine mecca Vinopolis, AMD in the US saw fit to charter an entire aircraft carrier. The fact that EMEA returns some 60 percent of AMD's graphics revenue, but only got a tenth of the launch budget of the US, requires some further investigation in our opinion.

So this could end up being a Pyrrhic victory for AMD, as it risks alienating its channel once more by starving it of product just when it needs it the most. At time of writing, more factors explaining the short-fall of supply to the channel are becoming apparent - some of them creating a distinct sense of déjà vu - so watch this space for an update.

In the meantime, if you have your eye on one of these shiny new graphics cards you might want to get one while the going's good, as the law of supply and demand implies these cards are unlikely to go down in price anytime soon.

 



HEXUS Forums :: 6 Comments

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famine… struggle… victim….

:rolleyes:
Ebay scalpers…

On your marks… get ready… go…
HEXUS
The fact that EMEA returns some 60 percent of AMD's graphics revenue, but only got a tenth of the launch budget of the US, requires some further investigation in our opinion.

Me thinks someone is bitter they didn't get invited to a nicer party…

(I'm assuming this is talking about the launch festivities, as opposed to the launch supply of cards :))
Why is it every time someone says:

“We've got so much demand we can't meet it”

I instead hear:

“Our yields suck”

?
Given the global nature of news i don't think it matters too much how you split your budget on your marketing events, most of the articles i've read about the multi displays have been much of a sameness.

If they're launching a month before windows 7 then surely “a couple of weeks” is fine to fulfill AIB partners orders? OEM system builders surely need a bit of a head start to get their system images built for production and all that.

Or maybe i'm just missing the way this all works :)

I want a 5800 card but i think i'll hold out for Sapphire to get a Vapor-X version out, my 3870s make far too much noise even if they are nice a cool…