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Friday, 03 September 2010 10:21

AMD VP explains why ATI brand was dropped

Written by


“Evolving the brand”
Writing in his blog, AMD Corporate Brand Vice President John Volkmann tried to explain why AMD chose to drop the ATI brand, but we can’t say that the explanation was of much help.

Basically Volkmann stressed that the decision was made after numerous surveys showed that most consumers have absolutely no idea what they are buying, making certain brands redundant. While this might be true of people who buy their gear at Wal-Mart, enthusiasts pay a bit more attention and some of them are fanatical about what they buy.

“Time and again, our research confirms that the average PC buyer is unaware of what processors are under the hood of their PC.  This is why we invest very little in ‘brand-building’ with the mainstream market segment,” he wrote.

However, Volkmann pointed out that the Radeon brand wasn’t going anywhere and that it was a very strong brand by any measure. Basically it turned out that Radeon was a stronger brand than ATI, and the same apparently goes for AMD, hence the company chose to combine the two and drop the ATI badge. Sentimental value was obviously not a consideration, just cold numbers.

We’re still saddened by the decision to move away from the legendary red brand. We believe it could have been transformed into an entirely different brand, aimed mainly at the enthusiast market, but that’s a different story altogether.

You can check out Volkmann’s blog here.
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Comments  

 
+3 #1 thaad 2010-09-03 11:30
so.. 1-1 = 1
 
 
+8 #2 johndgr 2010-09-03 11:31
"This is why we invest very little in ‘brand-building’ with the mainstream market segment"

This is why NVidia is No 1 in marketing and you No 3. There is no No 2.
 
 
+39 #3 thetruth 2010-09-03 12:00
At the end of the day, since we know about the technology we're buying, it shouldn't matter if they drop a name like ATI. It's very similar sounding (and looking) to AMD, and although it's sad to see it go... I don't care too much.
 
 
-38 #4 jonelsorel 2010-09-03 12:53
What a sick twisted logic that is, John. And based on bullshit too. The truth is the only reason you (AMD) killed ATI now is - as you admitted - 1) right now it's on a roll with the 5000 generation and 2) you want to push forward with your half-baked fusion thing - based on a 6 year old CPU.

Do you think Intel would've killed nVidia too, had they bought it ?

Now nVidia's competition on the discrete graphics market is called ... AMD? The ones in second, after Intel? What a fabulous advertisement!

You usually kill the weaker brand, not the stronger!

Your move, for a company that aims to be #1 in both CPU and GPU sectors, was idiotic to say the very least and probably one of the dumbest moves in corporate history to date.
 
 
-14 #5 jonelsorel 2010-09-03 12:57
Companies invest billions in brand-building (usually the ones that are #1), and to you it's not important?

Loser mentality.
 
 
+19 #6 Nooblet 2010-09-03 13:53
DAAMIT!!!
 
 
+20 #7 Kob 2010-09-03 14:08
What an ignorant VP!
"our research confirms that the average PC buyer is unaware of what processors are under the hood of their PC."

"intel inside" campaign was one of the most successful ad/brand campaigns ever, as documented again and again by marketing research firms.
 
 
-6 #8 FistOfGod 2010-09-03 14:14
Invest "little" in brand building; this is how big problems usually start.

I mean, if this is the case then why even bother making performace cards? Leave high-end market to nVidia, who obviously still care about their brand, and focus on making those 128MB 5120 HTPC jobbies, or whatever your beloved "average consumer" wants for their living room. This is pathetic, I hate it when bean counters diss a legend such as ATi.
 
 
-8 #9 FistOfGod 2010-09-03 14:16
Oh, and when you do your research in WalMart in Nebraska, time and time again, no wonder this is the results you get, time and time again. Go and do your precious survey at E3 and see whats what.
 
 
+25 #10 Bl0bb3r 2010-09-03 14:59
Quoting johndgr:
This is why NVidia is No 1 in marketing



Do you want to buy from nvidia marketing consultancy or graphics cards?

FWIW, branding is of lesser importance to the main manufacturer. The issue of branding and marketing should be left to OEM's and as Volkmann said, most people don't know what's under the hood... and frankly they don't give an ef what under the hood is called. When they walk in a Wallmark they see all they want to see, a simple brand like Dell or HP, they check the prices and if they fit the pocket they buy'em.

We, the enthusiasts could care even less about the brand... all I know is that if SI beats the shit out of Fermi I want to buy it and I don't care if there's no ATI in the name.
 

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