Computers Special: PC's future is in emerging markets, especially China

The US' Advanced Micro Devices Inc (AMD) has planed to increase its China sales in smaller cities and rural areas because it believes less-developed areas are a future goldmine for the personal computer business, according to its new head.

China's information technology (IT) industry has reached an important point, with the rise of cloud computing and the government pushing the integration of the Internet, broadcasting, and communications, explained Rory Read, the president and CEO of AMD, a multinational semi-conductor company.

"The next billion personal computer (PC) customers will come from emerging markets, especially China," Read went on to explain.

And AMD's China business is crucial to its growth and future success, he said.

Read was appointed top executive in August, when the interim CEO, Thomas Seifert, returned to his original role as chief financial officer. Read is AMD's third CEO, since 2008.

"I'm really pleased to be joining AMD at this important time in its history," said the 49-year-old Read. He said he saw the job as a "once in a lifetime opportunity", a chance to be a part of a technology team at this crucial point in the computing industry.

Read said he does not think that desktops and laptops are going to die any time soon and that the PC market will continue to grow over the next five years, despite the addition of tablet PCs.

AMD teamed up with Chinese PC makers, such as the Lenovo Group, Asus, and Acer Inc to penetrate the country's smaller cities and even rural areas.

It plans to build a stronger relationship with PC manufacturers by giving them what they need, Read explained.

The company has approximately 2,500 employees in China.

The Lenovo Group, one of AMD's most important partners in China, and in fact Read's previous employer, also plans to boost laptop sales in smaller cities and rural areas, according to Tang Jie, its vice-president.

Taiwan's Acer, the world's fourth-largest PC maker by sales, expects sales to grow by 20-25 percent in 2012, said Oliver Ahrens, who heads its China operation.

In commenting on this, Read said, "Our APUs and processors will help them gain market share."

In contrast to its bold strategy in emerging markets, the microprocessor maker announced on Nov 3 that, Reuters has reported, it plans to save about $200 million in operating costs in 2012 by cutting 10 percent of its global workforce and streamlining its internal business processes.

The savings generated by that move will help bankroll research and expansion in areas such as low-power chips, emerging markets, and cloud computing, according to a company statement.

(China Daily 12/09/2011 page14)