50x15 Q&A with Henri Richard, Executive Vice President and Chief Sales and Marketing Officer, AMD
9/19/2006

Why are high growth markets important to AMD?
If you look at AMD's influence and success around the world today, our profile in nearly every region continues to rise. We're seeing particular success in Latin America, Africa and the Middle East, India, and Greater China.

Of course, our success expands as we continue to learn more about how people around the world use technology. When we first announced 50x15 at the World Economic Forum Annual Meeting in Davos in January 2004, it stood largely as a call to action for our industry. Since that time, 50x15 has evolved and matured into a model for how to do digital inclusion right.

What do you believe the future holds for AMD in high-growth markets?
The future is wide open. As AMD's 50x15 Initiative continues to equip people around the world with technology that enables them to lead better lives, many of them will eventually demand additional solutions, or a greater variety of solutions. Still more will likely develop new ideas to further accelerate technology adoption in their region of the world. In some cases, AMD will be the first company they think of. In other cases, they will approach our local partners who will work with us to create future solutions. And in still other cases where AMD may not play a direct role, we will still have succeeded in transforming the way of life for thousands of people, thereby increasing the size of the global economy. In all cases, AMD's business stands to benefit. There's no reason to limit ourselves.

But, will people in these markets really pay for technology? Is it possible to generate not just revenue, but profits?
It's important to understand that customers in these markets look for the best technology the same way customers in traditional markets do. Contrary to conventional wisdom, customers in high-growth markets are willing to pay the right price for the right products. More importantly, they are sensitive to established brands. Our experience in places like Brazil, Africa, India and China demonstrates conclusively that people are willing to pay for quality products and relevant technology. Data compiled by the World Resources Institute, a non-profit organization based in Washington, D.C., shows that people in high-growth markets are typically willing to spend about five percent of their income on proven connectivity solutions. In the top 20 high-growth markets alone, this represents a combined total of $100 billion - a very compelling number by any standard of measure. In my view, pursuing business opportunities in these markets is the only way to do it right for everyone involved.

You've specifically stated that your acquisition of ATI will benefit 50x15. Can you explain how?
Our merger with ATI, which we expect to be approved by the end of the year, will have enormous implications for 50x15 and our high-growth market strategy. ATI is widely regarded as a market leader in the graphics industry, of course. And much like AMD, ATI is built upon the strength of its people, products and customer focus. This commitment to customer centric innovation has allowed ATI to gain a solid foothold in a number of emerging markets, including Russia, Latin America, India and the Middle East. When the merger of our two companies is complete, the potential for designing new types of high-performance, cost-efficient platforms specifically targeted for emerging markets is compelling. A solution based on an integrated CPU and GPU, for example, would have enormous relevance for high-growth regions of the world. In addition, AMD and ATI both have strong and complementary relationships with regional partners that we expect will help us accelerate 50x15 around the world in ways that would not have been possible prior to our merger.

What is the one thing that has surprised you the most about 50x15?
I continue to be amazed by how pervasive the entrepreneurial spirit is everywhere around the world - especially in high-growth regions. The conventional wisdom holds that people living in these regions require continuous assistance to succeed. This is wrong. Our experience, and that of many of our partners, has shown that, in fact, people in these markets are highly motivated, business savvy and proactive. They are not looking for a handout or charity. Like their counterparts in Europe, Japan and North America, they are looking for the right technological tools to enable their vision for a better life. This is why 50x15 is accurately described as AMD's go-to-market strategy for high-growth markets. It's crucial to understand that this vision is not something AMD and its 50x15 partners alone can define. But it is most definitely a vision we can, and must, serve.