AMD 2009 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2009 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

typically include any commitment or requirement for minimum product purchases. We primarily use purchase
orders, sales order acknowledgments and contractual agreements as evidence of our sales arrangements. Our
agreements typically contain standard terms and conditions covering matters such as payment terms, warranties
and indemnities for issues specific to our products.
We generally warrant that our microprocessors, GPUs, and chipsets sold to our customers will conform to
our approved specifications and be free from defects in material and workmanship under normal use and service
for one year. Subject to certain exceptions, we generally offer a three-year limited warranty to end users for
microprocessor products that are commonly referred to as “processors in a box” and for ATI branded PC
workstation products. We have also offered extended limited warranties to certain customers of “tray”
microprocessor products and/or workstation graphics products who have written agreements with us and target
their computer systems at the commercial and/or embedded markets.
We market and sell our microprocessor and embedded processor products under the AMD trademark. Our
desktop PC product brands for microprocessors are AMD Phenom, AMD Athlon and AMD Sempron. Our
Notebook PC brands for microprocessors are AMD Turion, AMD Athlon and AMD Sempron. AMD Athlon
processors and AMD Turion processors are sometimes marketed using the “Neo” model designator. Our server
and workstation brand for microprocessors is AMD Opteron. We also sell low-power versions of our AMD
Opteron, AMD Athlon, AMD Turion and AMD Sempron processors as embedded processor solutions. We
market and sell our chipsets under the AMD trademark. However, if the chipset contains an integrated graphics
processor, this integrated processor is marketed under the ATI trademark.
We market and sell GPUs for the consumer and professional markets under the ATI trademark. Our product
brands for professional markets are ATI FirePro, ATI FireGL and ATI FireMV. Our product brand for the
consumer graphics market is ATI Radeon.
In September 2009, we announced the VISION Technology from AMD campaign. VISION Technology is
designed to simplify the buying process for consumers by more clearly connecting our brand to the level of
activities that consumers want to perform on the PC. VISION Technology contains three levels of increasingly
rich PC system capabilities: VISION Basic; VISION Premium; and VISION Ultimate to reflect the different
usage patterns of PC consumers, from digital consumption to content creation. For example, notebook PCs based
on VISION Basic technology support activities such as watching movies, playing games, listening to music or
surfing the Internet while notebooks based on VISION Premium technology enable HD movie content and higher
quality gaming, and notebooks based on VISION Ultimate technology enable users to create rich HD content. In
January 2010, we introduced VISION Pro Technology. Designed for business users, VISION Pro Technology
extends the approach of VISION Technology to commercial PC platforms. We launched the first notebook PC
models based on VISION Pro Technology in January 2010. Also, in the first quarter of 2010, we plan to
introduce a fourth level, VISION Black, to enable the highest end capabilities sought by enthusiasts, primarily on
desktop PCs.
We market our products through our direct marketing and co-marketing programs. In addition, we have
cooperative advertising and marketing programs with customers or third parties, including market development
programs, pursuant to which we may provide product information, training, marketing materials and funds.
Under our marketing development programs, eligible customers can use market development funds as partial
reimbursement for advertisements and marketing programs related to our products, subject to meeting defined
criteria. Original Equipment Manufacturers, or OEM, customers may qualify for market development funds
based on purchases of eligible products.
Customers
Our microprocessor customers consist primarily of OEMs, original design manufacturers, or ODMs, and
third-party distributors in both domestic and international markets. ODMs provide design and/or manufacturing
11