AMD 2008 Annual Report Download - page 21

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This product line includes the ATI Mobility Radeon HD 3800 series for gaming enthusiasts, the ATI
Mobility Radeon HD 3600 for multimedia performance notebooks, and ATI Mobility Radeon HD 3400 for value
and ultra-thin notebooks. These GPUs allow notebook users to enjoy the latest video games with smooth frame
rates and with enhanced visual quality options enabled. They offer HDMI video and audio support and reduce
CPU utilization, increase extended battery life and improve the visual quality of HD video playback, such as
from Blu-ray disc drives. ATI Mobility Radeon HD 3400 series support multi-GPU hybrid graphics, external
graphics capabilities and Microsoft DirectX™10.1. In January 2009, we launched our next generation of graphics
processors for notebooks, the ATI Mobility Radeon HD 4000 series of products. These products are capable of
up to twice the gaming performance of the ATI Mobility Radeon HD 3000 series.
PCTV Products. Our PCTV products incorporate a wide variety of features to allow consumers to add
broadcast TV to their PCs. Our ATI TV Wonder™products allow consumers to watch and record TV on their
PC, listen to FM radio stations and watch DVD movies. Our premium ATI TV Wonder tuners, such as ATI TV
Wonder Digital Cable Tuner, support CableCARD technology to receive and view premium digital cable shows
on the PC. Our ATI All-in-Wonder™HD products integrate high performance graphics and the latest TV-tuner
technologies on a single circuit board. Both our ATI TV Wonder and All-in-Wonder HD products incorporate
our latest generation ATI Theater™ 600 Pro and ATI Theater 650 Pro TV technology to support advances in
analog TV and digital TV reception.
Workstation and Server Products. Our products for the professional workstation market consist of our
ATI FirePro™, ATI FireGL™ and FireMV™ product families. We designed our FirePro3D and ATI FireGL
graphics cards for demanding 3D applications such as computer-aided design and digital content creation, while
we designed our ATI FirePro Multiview and FireMV 2D workstation cards for financial and corporate
environments. We also provide products for the server market, where we leverage our graphics expertise and
align our offerings to provide stability, video quality and bus architectures that our server customers desire.
Game Consoles. Semiconductor graphics suppliers have leveraged their core visual and graphics
processing technologies developed for the PC market by providing graphic solutions to game console
manufacturers. In this market, semiconductor graphics suppliers work alongside game console manufacturers to
enhance the visual experience for users of sophisticated video games. We leverage our core visual processing
technology into the game console market. Our customized GPUs process the graphics in the Microsoft®Xbox
360™, Nintendo Wii and Nintendo GameCube videogame consoles.
Marketing and Sales
We sell our products through our direct sales force and through independent sales representatives in both
domestic and international markets pursuant to non-exclusive agreements. Our sales arrangements generally
operate on the basis of product forecasts provided by the particular customer, but do not typically include any
commitment or requirement for minimum product purchases. We primarily use binding 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 microprocessor products sold to our customers will, at the time of shipment, be
free from defects in workmanship and materials and conform to our approved specifications. 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,” a one-year limited warranty to direct purchasers for all other
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.
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