Newsmaker: Why $100 computers are on the way

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and seven out of 10 of the top are using it. But you're right. They don't talk about it.

What about the communications space?
Ruiz: If by communications you mean the traditional communications things...the answer is no in the near future. We will have communications technology in our chipsets, especially around wireless and broadband capability. But we're not doing anything that would put us in the same competitive space as people like Qualcomm or TI.

So the effort is more in consumer electronics?
Ruiz: The way I would describe it is, because of our commitment to the x86 architecture, we have an opportunity to be the premier company--if we're not there already--in that architecture. Therefore, we can take it to places that no others can, because they don't have the intellectual property and the experience to do it.

"We'd love to have Dell as a customer, obviously, and we'll continue to always work hard at it."

So our intent is to continue to go down in power and cost so that we could see x86 used in places like automobile entertainment and consumer electronics devices, such as a portable media player, and perhaps potentially down the road a digital convergence device that has mobile and computing capability that's far superior to what a smart phone has today.

So by staying focused on one architecture, we believe we can go all the way from a very low-cost consumer device all the way to a supercomputer.

People are dying to know what the deal is with Dell.
Ruiz: We'd love to have Dell as a customer, obviously, and we'll continue to always work hard at it. But you know, frankly, if you take the extreme that if Dell were to publicly say they really no longer have an interest in AMD and they're not going to do it, they lose all the leverage with the other supplier. So I think by definition, they'll never say that.

Then the question is will we ever be able to get to the point where we provide a good solution to their business. I believe we will, but it's not clear when and how that's going to happen.

What's the next step for AMD in emerging markets? Are you going to continue with the Personal Internet Communicator or are you working on the mythical $100 PC?
Ruiz: The PIC was our first attempt to do something different. I think that will continue to morph into a new generation of products. We have a PIC 2 and a PIC 3 on the road map. All those products will improve the (computing) power and value, while at the same time lowering the cost.

Related story
AMD offering blueprint for $185 PC

Low-price computer design is meant to help provide Internet access to people in emerging markets.

I don't think a $100 computer is out of the question in a three-year time frame. A lot of people forget that the first cell phones came out at $3,000 to $4,000 dollars and today are free. I think there's going to be some of that same kind of movement with computing and communications devices.

It's important for us to not lose sight of the segment that today doesn't have any products built for it. The trickle-down effect of desktops and laptops into that segment just doesn't work. I believe that we have an opportunity to use our x86 know-how and capability to really build products for that segment. That will be the PIC at the beginning, and there will be more. I think, within three years, it's not at all unreasonable to think of a $100 laptop for that segment.

A $100 laptop?
Ruiz: Yes.

When it comes to the competition, was the Japan FTC ruling against Intel a victory for AMD?
Ruiz: I think the important thing in Japan is it's a victory for the customer and the consumer. More than anything else it tried to eliminate any impediment to free and open competition.

We would hope that we can see the elimination of those impediments throughout the world, not just in Japan.

So Intel is doing the same thing in other markets?
Ruiz: We believe that the practices that they have been accused of doing in Japan and the evidence that was found by the FTC (Federal Trade Commission) in Japan is probably indicative and a proxy of the way they operate around the world.

Do you think they use the Intel Inside campaign to keep OEMs on the hook?
Ruiz: There are some things that are not allowed when you're a monopoly, and they're pretty clearly spelled out. Although there are slight variances from one place to another, they're all pretty clear in terms of holding someone hostage to a monopoly. I think those things need to change.

Then AMD isn't planning to do something like Intel Inside?
Ruiz: No. We prefer to be on our customers' side rather than on the inside.

Are acquisitions something you're looking at?
I do think there's an opportunity for us to complement our x86 architecture. The possibility of either acquiring or doing things like that with some companies is something we'll consider.  

More Newsmakers

[pcLoadLetter]

It is possible IF

people can get coaxed away from the unsecure, bloated POS known as the windows operating system. With windows, double or triple that $100 price tag.

Funny how hardware get faster and more powerful, yet cheaper and windows get buggier, more bloated, slower and more expensive over time.

[catchall]

Ya right

Double or triple? What are you talking about? You can get new desktops for $300 from Dell, so your telling me that now, at this time, hardware is free and the cost of that low end Dell is just the Windows OS?

No, no. Large manufacturers dont pay anywhere near that, so neither will the end user. Ive heard guesses of $40 a license for big shops, but have seen nothing to back that up.

But you are partially correct. MS will have to lower the cost of the OS if it is to be a part of the $100 PC. And I think they can do it, hoping to sell services and add-ons down the road.

[Kevin Baron]

AMD

It's sad that AMD has the fastest chips yet the have the lowest market share. Dell should play ball and jump on board. The fact is that there are many people out there who want a Dell/AMD PC. Dell is considered(because it is),the top dog in the PC industry. If they backed AMD the world would follow. I dont know anyone who is a Intel loyalist. I do however know many AMD loyalists.

[highlander2000]

Uh

There are plenty of loyalists for anyone and anything, methinks. I know people who would never buy an AMD computer if they didn't have to because they feel AMD's low market share is an obvious sign of total inferiority.

AMD does make good advancements in chip architecture, like the jump to Athlon and then Athlon XP and then Athlon 64. I think they really need to pump up now in the area of multicore chipmaking.

[bammike]

Here's one!!!

I am a computer tech, and an Intel loyalist. I come across nothing but problems with the cheap AMD processors and the boards they are installed on. Particularly when I see a K6-2 processor on a machine, I want to flee. It is a shame this countries manufacturers try to aim for cheapest with no regard for quality. Yes, the word is QUALITY. The old addage that you get what you pay for does not always apply, but in most cases it does. This is one of them.

Mike

[hatandglasses13]

This is horrible

Great, $100 PC's so that people who don't know how to use
computers buy them incredibly cheap and then they don't work
for anything other than solitaire on a good day.

What is wrong with the PC industry? Instead of making
computers that work, let's undercut prices so everyone hates
technology.

Brilliant.

Software, Baby!

We need smarter programmers and better compilers. End of story.

Many things in our society undermines and punishes software purists.

Bottom of the pyramid

If you can sell a PC/network appliance at $100, you'll reach a market of a billion. Also, you'll face little competition from those that currently dominates western hemisphere deskptops and homes.

[momule]

absolutely

most folk that I know that are computer deprived are only so because the cost is that of a new fridge. Give them a 100 dollar device that does what most people do: internet browsing, email and simple word docs, and you'd sell a million the first month.