AMD 2015 Annual Report Download - page 15

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Semi-Custom. Our semi-custom products are tailored, high-performance, customer-specific solutions
based on AMD’s CPU, GPU and multi-media technologies. We work closely together with our customers to
define solutions to precisely match the requirements of the device or application. Historically we have leveraged
our core graphics processing technology into the game console market by licensing our graphic technology in
game consoles such as the Microsoft®Xbox 360™ and Nintendo Wii and Wii U. More recently, we developed
the semi-custom SoC products that power the Sony Playstation®4 and Microsoft®Xbox One™ game consoles.
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. 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 products 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 those CPU and AMD A-Series
APU products purchased as individually packaged products, commonly referred to as “processors in a box”, and
for 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 latest products under the AMD trademark. Our desktop PC product brands for
microprocessors are AMD A-Series, AMD E-Series, AMD FX™ CPU, AMD Athlon™ CPU and APU, AMD
Sempron™ APU and CPU and AMD Pro A-Series APU. Our notebook and 2-in-1s for microprocessors are
AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX™ APU, AMD Phenom™, AMD
Athlon CPU and APU, AMD Turion™ and AMD Sempron APU and CPU. Our server brand for microprocessors
is AMD Opteron™. We also sell low-power versions of our AMD Opteron, AMD Athlon and AMD Sempron, as
well as AMD Geode™, AMD R-Series and G-Series processors as embedded processor solutions. Our product
brand for the consumer graphics market is AMD Radeon, and AMD Embedded Radeon is our product brand for
the embedded graphics market. Our product brand for professional graphics products is AMD FirePro™. We also
market and sell our chipsets under the AMD trademark.
We market our products through our direct marketing and co-marketing programs. In addition, we have
cooperative advertising and marketing programs with customers and 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
reimbursement for advertisements and marketing programs related to our products and third-party systems
integrating our products, subject to meeting defined criteria.
Customers
Our microprocessor customers consist primarily of original equipment manufacturers (OEMs), original
design manufacturers (ODMs), system builders and independent distributors in both domestic and international
markets. ODMs provide design and/or manufacturing services to branded and unbranded private label resellers,
OEMs and system builders. Our graphics product customers include the foregoing as well as add-in-board
manufacturers (AIBs).
Customers of our chipset products consist primarily of PC and server OEMs, often through ODMs or other
contract manufacturers, who build the OEM motherboards, as well as desktop and server motherboard
manufacturers who incorporate chipsets into their channel motherboards.
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