AMD 2010 Annual Report Download - page 17

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Marketing and Sales
We sell our products through our direct sales force and through independent distributors and 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 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 also 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 Phenom, AMD Turion, AMD Athlon and AMD Sempron.
AMD Athlon processors and AMD Turion processors are sometimes marketed using the “Neo” model designator
for low power products targeted at the thin-and-light notebook segment. Our server 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.
Prior to October 2010, we marketed and sold GPUs for the consumer and professional markets under the
ATI trademark. In October 2010, we transitioned the consumer graphics brand name from ATI Radeon to AMD
Radeon for new products. All previously launched products retain the ATI Radeon brand name. In January 2011,
we transitioned the brand name from ATI to AMD for new professional graphics products launching in 2011. All
previously launched professional graphics products will retain the following brand names: ATI FirePro, ATI
FireGLTM and ATI FireMV.
We launch or update new platforms for consumers in the desktop and notebook markets under our VISION
Technology from AMD brand. We launched VISION Technology in late 2009 as a new way to help consumers
select the PC that best meets their needs. We designed VISION Technology 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 multiple levels of increasingly rich PC system capabilities to address the
diverse needs of today’s PC users. 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. In May 2010, we introduced 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 co-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 OEMs, customers may qualify for market development funds
based on purchases of eligible products.
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