I work in the AMD FAB at Dresden Germany.
AMD has posted record revenues in Q1 2004. They are turning a profit.
AMD produces better quality CPU's.
Outsourcing Chipsets is not bad and does not make AMD stupid. if you had any "business" sense, whatever that means, outsourcing is more financially sound for AMD.
Even if AMD produced their own chipsets and offered them as one unit to computer manufacturers, it would not change AMD's share in the market. If AMD is outsourcing their Chipsets, don't you think AMD is already "packaging" their CPU's with these chipsets when offering them to computer makers so that the computer makers do not have to deal with multiple vendors?
The main reason Intel maintains 80% of the market is because of volume / resources. Even if the demand for AMD shot through the roof, and everybody wanted an AMD chip, and all the computer makers demanded AMD in their products, AMD does not have the manufacturing capacity to produce and supply the demand for these chips.
Put it this way, all of AMD's CPU's are made in Dresden Germany at a 200mm FAB. Intel owns Five 300mm FAB's in America alone which are 3 times the size of AMD's single FAB for CPU's. Intel can produce at least 20 times more chips than AMD per day/month/year ...
This is the only reason why Intel dominates the market. If AMD could suddenly pop up Three 300mm FAB's and start cranking out chips, they'll eat away at Intel's market share.
Expect more from AMD as they are currently building a 300mm FAB (in fact, i hear the construction right outside as I type this and have been watching its construction from the beginning).
AMD produces better quality chips, they just can't produce as many as Intel; thus, Intel dominates the market and computer makers have to use Intel because AMD can't supply enough chips for the demand.
I do not work for AMD, but i work with them. I have worked with Intel and with AMD and from a business perspective and as for working environment, AMD is much better.
And as stated before, AMD chips are better.
If you are someone with such insightful business sense, then please apply to AMD as an Executive Officer... I'm sure with such expertise (in the SemiConductor Industry I'd hope), one could highlight their faults and turn AMD around. But ya better have a few magic beans in your pocket so that AMD could pop up a few new 300mm FAB's to start producing MILLIONS OF MORE CHIPS, cuz that's what it takes... not any of those other "decisive strategic business maneuvers" fancy schmancy talk...