AMD 2008 Annual Report Download - page 22

We generally warrant that graphics and chipsets 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 also cancel
orders by providing 30 days prior written notice to us without incurring a penalty.
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 Phenom II, AMD Athlon, and AMD
Sempron. Our Notebook PC brands for microprocessors are AMD Turion, AMD Athlon (including the recently
released AMD Athlon Neo) and AMD Sempron. 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 a graphics core, this core is marketed under the ATI trademark.
We market and sell GPUs for the consumer and workstation markets under the ATI trademark. Our product
brands for workstation are ATI FirePro, ATI FireGL, and ATI FireMV. Our product brand for the consumer and
non workstation commercial graphics market is ATI Radeon. We market GPUs for the consumer electronics
markets under the AMD trademark.
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.
We promote our gaming platforms for desktop and notebook PCs under the AMD Game! brand, and our
platforms engineered for business-related applications and users under the AMD Business Class brand. 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. 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
services to branded and unbranded private label resellers and OEMs. Our graphics products customers include
the foregoing as well as add-in-board manufacturers, or AIB manufacturers.
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.
Our sales and marketing teams work closely with our customers to define product features, performance and
timing of new products so that the products we are developing meet the needs of our customers. We also employ
application engineers to assist our customers in designing, testing and qualifying system designs that incorporate
our products in order to assist in optimizing product compatibility. We believe that our commitment to customer
service and design support improves our customers’ time-to-market and fosters relationships that encourage
customers to use the next generation of our products.
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