Apple chooses AMD to supply its GPU's

FrankJH · 6 Jun 2016 at 15:34

D.P. said:
My (work) imac suffered that problem. The apple store charged AMD something like $384 for parts and labour replacement. I womet how many people suffered the same.

I very much doubt it as majority of that would be the actual cost of the replacement which wouldnt have been at street price (cost to AMD $50 at most and probably more like $5)

Customer receipt may well say some "random" figure, but that wont be what it actually cost AMD to fulfil the order, so its an arbitrary number.

KompuKare · 6 Jun 2016 at 15:52

layte said:
And more recently. https://support.apple.com/en-us/HT203787

What was the last Apple machine sold with a NV GPU? This seems a continuation of the current status quo, something that hasn't exactly done wonders for AMD's bottom line.

While that is indeed more recent, the Nvidia solder defect was on a totally different scale with millions of defective parts. I alone saw two 8800GT's, 3-5 nForce chipsets, a 8400GS (MXM card without which the system was useless - ironically an AiO with a perfectly good Intel chipset with graphic but due the way Nvidia design MXM taking the card out does not enable the onboard), plus a few laptops.

In fact, I just had to fix a Core2 machine for a friend a few weeks ago with an affected nForce chipset. (Still have the faulty motherboard here but didn't try baking it yet since that was usually at best a short term fix.)

To be fair to Apple (and by implication curse HP and Dell), they were about the only OEM who really tried to fix the issue for their customers, but when the chip is inherently faulty replacing it only hides the problem for a while.

The thing which always got me with the Nvidia bumbgate was they way they hid and misled about it. The claim to sell a premium product but when something goes wrong they are far from premium. Premium prices perhaps.

Still the did have to put aside $250 million but I think the true extend was a lot more. Whenever I saw the losses in their Tegra adventure I though, "that $billion was what me and other solder defect sufferers were owed". The whole fiasco does explain why Charlie Demerjian is a persona non grata at Nvidia for exposing their economical ways with the truth.

bru · 6 Jun 2016 at 16:05

fs123 said:
5c? No one in their right mind would make such a deal. The cost of any fails would far exceed any profits made.

Technology companies usually have a margin of 5-10% on average. AMD should be making around $5-10$ profit per APU sold. AMD may be in debt but that does not mean they put themselves in a situation where they could go deeper in the Red.

http://www.theinquirer.net/inquirer/news/2308282/amd-makes-more-profit-than-sony-on-the-ps4

edit: you were being sarcastic right? my fail

Not wanting to take the thread off topic too much, but that article is nonsense.
If Sony sell the console for $399 and it cost them $381 to make it, they make $18 dollars profit, Ok fine.
If AMD sell the APU for $100 and it cost them an undisclosed amount to make it, they make $100 profit, er bit of a fail there.
They either make $100 on each sale and Sony make $399 on each sale Gross, or you remove the cost of making the part and list the NET profit, not mix and match to make a headline.

I expect your right that AMD make around $5-10 for each sale, but certainly not $100.

D.P. · 6 Jun 2016 at 16:06

fs123 said:
5c? No one in their right mind would make such a deal. The cost of any fails would far exceed any profits made.

Technology companies usually have a margin of 5-10% on average. AMD should be making around $5-10$ profit per APU sold. AMD may be in debt but that does not mean they put themselves in a situation where they could go deeper in the Red.

http://www.theinquirer.net/inquirer/news/2308282/amd-makes-more-profit-than-sony-on-the-ps4

edit: you were being sarcastic right? my fail

That article is hilariously conflating profit and revenue. AMD gets $100 or so aper a console but for that they have to design, develop, manufacture and ship hardware, provide ongoing software and driver support, and handle warranties.

D.P. · 6 Jun 2016 at 16:08

FrankJH said:
I very much doubt it as majority of that would be the actual cost of the replacement which wouldnt have been at street price (cost to AMD $50 at most and probably more like $5)

Customer receipt may well say some "random" figure, but that wont be what it actually cost AMD to fulfil the order, so its an arbitrary number.

For the part that is probably true but you can be sure apple will be charging a fair amount for their labour.

Orangey · 6 Jun 2016 at 16:18

The margins on the console APU is probably up to about 30% nowadays. It was mid-20s in 2014.

As for the OP topic, I don't think we need a new thread every time AMD sell Apple some cheap chips.

fs123 · 6 Jun 2016 at 16:31

D.P. said:
That article is hilariously conflating profit and revenue. AMD gets $100 or so aper a console but for that they have to design, develop, manufacture and ship hardware, provide ongoing software and driver support, and handle warranties.

No one said $100 is the profit for AMD. $100 is what AMD get from SONY but after all costs they should be making $5-$10 profit per APU as a minimum.If their profit margin is higher then maybe they are making $20 or more profit per chip.

D.P. · 6 Jun 2016 at 16:48

fs123 said:
No one said $100 is the profit for AMD. $100 is what AMD get from SONY but after all costs they should be making $5-$10 profit per APU as a minimum.If their profit margin is higher then maybe they are making $20 or more profit per chip.

Did you even read the article:

AMD makes more profit than Sony on the PS4
Sony makes $18, AMD makes close to $100

Sony reportedly is making an $18 profit on its Playstation 4 (PS4), while AMD is likely making around $100 per console sold.

The article us complete nonsense.

The only thing that really matters is the profit from consoles. In 2015 AMD made $200m in their enterprise and semi custom, console are majority but not all of that. Good for AMD but not earth shattering, comparing operating profits for that division declined to half 2014 so even if the margins were some how high sales dropped off substantially.

http://wccftech.com/amd-q4-2015-yearly-financial-earnings/

thebennyboy · 6 Jun 2016 at 16:59

D.P. said:
Did you even read the article:

The article us complete nonsense.

Care to prove that it's nonsense?

bru · 6 Jun 2016 at 17:03

thebennyboy said:
Care to prove that it's nonsense?

Oh come on, the article deliberately misleads, using the price of the console, listing NET profit, followed by the Gross sale price of the APU.

It is a typical headline to get clicks.

thebennyboy · 6 Jun 2016 at 17:06

bru said:
Oh come on, the article deliberately misleads, using the price of the console, listing NET profit, followed by the Gross sale price of the APU.

It is a typical headline to get clicks.

Perhaps, still don't see anything to prove that it's wrong. It does say "reportedly" so taking it as fact and saying it's wrong is a bit daft.

andybird123 · 6 Jun 2016 at 17:13

this isn't news, Apple stopped using Nvidia altogether over a year ago, in fact wasn't this exact story run by someone else a few weeks ago?

thebennyboy · 6 Jun 2016 at 17:14

andybird123 said:
this isn't news, Apple stopped using Nvidia altogether over a year ago, in fact wasn't this exact story run by someone else a few weeks ago?

Didn't they have some sort of big disagreement? Nvidia and Apple that is.

Ferrari100 · 6 Jun 2016 at 17:14

I am sure Raja-Koduri is a big player in gaining successive Apple design wins.

bru · 6 Jun 2016 at 17:16

thebennyboy said:
Perhaps, still don't see anything to prove that it's wrong. It does say "reportedly" so taking it as fact and saying it's wrong is a bit daft.

I'm sorry I didn't see anyone taking anything as fact and then saying it was wrong.

CAT-THE-FIFTH · 6 Jun 2016 at 17:19

Every little helps!

Lokken86 · 6 Jun 2016 at 17:22

ICDP said:
Get real, AMD are making maybe 5c on each GPU sold to Apple, Sony, MS in their pathetic unpopular devices. Everyone knows only enthusiast level, or HSC GPU sales matter.

5c. Haha good one.

andybird123 · 6 Jun 2016 at 17:29

because pointing out that there is no way they make $100 profit from every APU sale means 5c is the only other option? I mean its not like there's 99 other whole dollar options between nothing and 100 is there

humbug · 6 Jun 2016 at 17:30

ICDP said:
I was going to post saying no doubt the negtaivity/nvidia defenders will be in here to say

Apple don't sell many computers anyway
Nvidia doesn't need to sell to AMD
AMD must be selling them cheap.

I see I was too late

Nvidia didn't want XBox One or PS4, nor do they want the new PS4.5 or the XBox 2.

Nvidia also don't want to be in Mobile Phones and Tablets.

Nvidia wants to be in Driverless cars.

andybird123 said:
This thread hurts

Lokken86 · 6 Jun 2016 at 17:33

andybird123 said:
because pointing out that there is no way they make $100 profit from every APU sale means 5c is the only other option? I mean its not like there's 99 other whole dollar options between nothing and 100 is there

AIR Its something like $30 per console though I can't remember how we came to that conclusion. It's in another thread somewhere. Probably the AMD are doomed thread.