Is AMD Profitabilty for real?

Implications: AMD CEO has appologized for delays in launching Barcelona chip, and promised that the company has already gone through a transitional year and is now projecting profitability in the second half of 2008.  The engines of growth will be the launch of the much delayed Barcelona and new integrated devices based on graphics processors fro ATI.  How realistic is AMD managment in prediction of profitability?  The markets are doubtful. 

Analysis:  AMD's problem is a recurring one: inability to deliver high quality products as promised, time and time again and refusing to admit that the root cause of chronic delays are due to structural internal organization. The messy acquistion of ATI and the integration issues have only added to their already heavy burden. The reality is AMD needs new management at the very top. The sort of management who cares about actually delivering quality products and not just promising it.

AMD's strategy in the past decade or so have been trying to leap frog Intel with faster chips.  What they fail to realize is that Intel doesn't sell microchips, it sells Peace of Mind to PC and server markets.  You buy Intel, you are ensured of a product well tested and is [almost] guaranteed to preform, and a company that will deliver.  The OEM like peace of mind better than any excitement that AMD will provide.  Given that, Intel can now go back to its merry margins and chages as though it is a monopoly, while AMD acts as a convenient competition who keeps the FTC away!