AMD 2007 Annual Report Download - page 16

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microprocessor products that are commonly referred to as “tray” microprocessor products, and a one-year limited warranty to direct purchasers of embedded
processor products. We have offered extended limited warranties to certain customers of “tray” microprocessor products who have written agreements with us
and target their computer systems at the commercial and/or embedded markets.
We generally warrant that graphics, chipsets, and certain products for consumer electronics devices will conform to our approved specifications and be
free from defects in material and workmanship under normal use and service for a period of one year, beginning on shipment of such products to our customers.
We generally warrant that ATI-branded PC workstation products will conform to our approved specifications and be free from defects in material and
workmanship under normal use and service for a period of three years, beginning on shipment of such products to our customers. Generally, our microprocessor
and embedded processor customers may cancel orders 30 days prior to shipment without incurring a penalty. Under our standard terms and conditions, graphics
and chipset customers may cancel orders by providing 30 days prior written notice to us without incurring a penalty, while customers of products for consumer
electronic devices may cancel orders by providing 90 days prior advance notice to us without incurring a penalty.
We market and sell our microprocessor and embedded processor products under the AMD trademark. Our product brands for microprocessors consist
primarily of AMD Phenom, AMD Athlon, and AMD Sempron processor brands for desktop PCs, the AMD Opteron processor brand for servers and
workstations, the AMD Turion mobile technology and AMD Sempron processor brands for notebook PCs. We also have the AMD LIVE!™ brand through
which we promote our entertainment platform solutions for desktop and notebook PCs as well as film, broadcast and music professional artists that use AMD
technology. Our product brands for our embedded processors consist of AMD Geode processors. We also sell low-power versions of our AMD Opteron, AMD
Athlon, AMD Turion, and AMD Sempron processors as embedded processor solutions.
With respect to our graphics and chipset products, we intend to continue to market and sell GPUs and graphics chipsets for the Intel platform under the
ATI trademark. We market and sell other GPUs, chipset products and our products for consumer electronics devices under the AMD trademark.
We market our products through our direct marketing and co-marketing programs. Our direct marketing activities include print and Web-based advertising
as well as consumer and trade events and other industry and consumer communications. We also sponsor the Scuderia Ferrari formula one racing team and we
work with them to determine their needs and how our AMD64 technology can help support those needs. The goal of our sponsorships is to increase awareness of
our brand and AMD64 technology.
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.
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 services to branded and unbranded private label resellers and OEMs.
Customers of our chipset products consist of PC OEMs, often through ODMs or other contract manufacturers who build the OEM motherboards, as well
as desktop motherboard manufacturers who incorporate chipsets into their channel motherboards.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008