Posted : 2013-01-27 15:26
Updated : 2013-01-27 15:26

AMD focuses on value-based service

David Kwon, corporate vice president of AMD

US technology giant
strengthening ties with Samsung Electronics

By Kim Yoo-chul

AMD, the world's second-largest supplier of computer processors, is expected to bounce back after a tough 2012 by strengthening value-based services for major clients, including Samsung, according to a senior company official.

In a recent interview with The Korea Times, AMD Corporate Vice President David Kwon said that the firm is focusing on boosting creative input for clients and making a visible difference in its relationship with customers through three key methods _ alignment, communication and collaboration.

''Everything starts and ends by ensuring our customers are successful. We work with our global accounts to ensure that we're bringing the right platforms to the market,'' he said.

''We have a true proposition in place offering true differentiation. Our clients are well-positioned to win and we have alignment on selling out these platforms with our customers' headquarters and our customers' regional sales teams," he added.

"AMD's customer teams and AMD's regional demand generation teams are all aligned and delivering on the same objectives.''

He stressed that what is really important in this business is opting for strategies to sell value, not products.

''We are selling value not just products. This is the core for our business strategy. We are looking for reliable relationships with our clients. AMD is utilizing our resources to help our clients sell their solutions and products in a better way,'' said Kwon.

''I'm consistently saying to employees and clients, sell the shoes not just the leather,'' said the president of AMD Korea, who also manages AMD's global accounts with Toshiba and Samsung Electronics.

Credited for a significant contribution to helping the firm's business with Samsung and Toshiba, Kwon was promoted to his current position early last year. ''I am directly reporting to AMD's top management as the promotion means I have more authority in handling AMD's global businesses.''

AMD suffered losses of $473 million for the fourth quarter of last year. But Kwon said the firm will see a turnaround this year by boosting sales in chips for mobile devices.

The executive said that fluctuating economic situations are challenging the PC market but he believes that AMD stock is going up as investors express confidence in the quality of the company's management and their capacity to make correct business judgments.

''Everyone is talking about speedier, high-end mobile devices. Probably by the end of this year, some products will be released, giving chances for us to expand our business.''

AMD is aiming for success in the tablet market with the launch of its Temash and Kabani chips. The company will try to expand its existing embedded chip business by moving into higher volume segments and plans to sell ARM-based server chips in 2014.

''We are always coming out with more innovative products to pass on to our users,'' Kwon said.

Over the past years, AMD has enjoyed business growth with its key clients in Korea and Japan. The U.S.-educated executive said AMD has seen 1000 percent growth in its Samsung business in terms of unit sales over the last three years. Its business with Toshiba grew 110 percent in 2012.

"These results are due to our initiatives for organic growth,'' he said

The biggest challenge for AMD is the rapid change in the global technology industry. Some say AMD was too slow in transitioning its respective businesses to catch up with changes in the market.

But the AMD executive says he isn't too worried.

''We trust our partners. Samsung, for example, is very smart and aggressive in the PC business. As you know, the PC business in 2011 was really tough and Samsung experienced difficulties last year. But we believe huge growth will come this year as manufacturers put PCs and mobile devices together.'' Kwon said.

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