In anticipation of the announcement of new 7nm processors, AMD increased its marketing and advertising spending by 27%, justifying such expenses as the need to promote new products to the market. The company's CFO Devinder Kumar said he was hopeful that higher revenues in the second half of the year would offset rising costs. Some analysts even before the publication of the quarterly report , that soon the potential for increasing the average selling price of Ryzen processors will exhaust itself, and in the future AMD will be able to increase revenue only due to the growth in volumes of processor sales in real terms.
In the first quarter, as can be judged by the slides from the AMD presentation, revenue from the sale of EPYC server processors and Ryzen client processors, as well as graphics processors used in data centers, almost doubled.
The average selling price of AMD client processors rose year-over-year in 2018, but fell slightly in sequential comparison as more affordable mobile processors diluted the range of processors.
In the documents published on the AMD website for the quarterly report, the company did not specify how the average selling price of processors has changed quantitatively. Some idea of ββthe dynamics of the average indicators allows you to get published next , where a deeper analysis of the trends observed in the first quarter is made.
AMD does not break down Computing and Graphics products into specific categories, but makes it clear that in a year-over-year comparison, the company's product shipments decreased by 8%, while the average selling price increased by 4%. The drop in sales volumes would have been stronger if not for the rise in popularity of central processing units. AMD's figures were dragged down by the graphic solutions of the Radeon family, which in the first quarter were left in warehouses a little more than necessary. These were the consequences of the fall in demand for video cards after the end of the "cryptocurrency boom".
If GPUs for the consumer sector were also pulling down the average selling price, then it was not only Ryzen CPUs that pushed it up, but also GPUs for server applications. It can be assumed that the latter have a higher added value, and if AMD's accelerator sales continue to grow, this will provide good support for the company's profit margin.
Source: 3dnews.ru