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  ATI revenue report, paper launches take their toll? 
  Jun 29, 2005, 07:30am EDT 
By: Sander Sassen

ATI reported on their third quarter results last week, which came as a bit of a surprise to most, as their net result was a loss of about $ 8.5-million. Honestly we expected ATI to do a lot better as they抳e been introducing one new product after another in the past few months. But that could just be the gist of the matter; introducing new products which aren抰 available just yet, hence they抳e created a demand but no sales, as the products aren抰 available at the introduction. But wait a minute hasn抰 that been ATI抯 modus operandi for the past two years? Introducing new products and then not being able to ship them in volume for the next few months?

Well, in hindsight it took ATI more than six months to get availability on its Radeon X800 XT PE graphic cards, motherboards carrying the XPRESS 200 chipset never made it into the retail channel and only showed up in OEM designs and HyperMemory never really materialized. But more recently we抳e seen lots of press about Crossfire, ATI抯 competing solution to NVIDIA抯 SLI, but again are left wondering where the actual product is at? Doing a product introduction is one thing, but making sure there抯 actual availability of that product is another. Hence ATI looks to have fallen victim to its own marketing tactics as the paper launches seem to have finally caught up with them in the from of declining sales.

But there抯 more, as despite not being able to ship products shortly after their introduction ATI has been delaying quite a few products over the past few months as well. Crossfire for example was supposed to be introduced months ago and their new graphic card architecture, dubbed R520, should抳e materialized into actual products on retail shelves by now. Instead R520 has been delayed again, probably due to the fact that the initial design is no match, or cannot guarantee a decisive victory over NVIDIA抯 latest graphic card, the GeForce 7800 GTX, which was available in volume at introduction. Maybe ATI needs to follow suit again, much like they did with SLI, after all that would be in their, but more importantly the customer抯 best interest.

Sander Sassen.


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Re: ATI revenue report, paper launches take their toll? Afrow UK 21 replies Jul 04, 2005, 10:23pm EDT


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