Feeds

ATI slumps on Compaq loss

Supply problems, dear?

  • alert
  • submit to reddit

Build a business case: developing custom apps

Another day, another stock market disaster for ATI, the graphics card market leader. Its share price slumped 8.55 per cent to $C16.55 and more than 5.4 million shares were traded yesterday on the Toronto Stock Exchange on news that it had lost a supply contract with Compaq. Could there be any connection with the supply win for Compaq Presarios announced yesterday by 3dfx? Maybe not -- the timing looks purely coincidental, according to sources, who say Nvidia replaced the ATI SKU. Market reaction may have been a tad overdone, for the Compaq ATI deal was worth only $1 million a quarter, according to one analyst. But the loss comes only weeks after ATI lost a big contract with Dell, worth an estimated $10 million a quarter. The winner still hasn't been announced -- but speculation at the time centred round Nvidia. But don't be surprised -- a reader tells us -- if it ain't good old Intel and it's good old i810 that walked away with that business. An interview with Michael Dell in Canada's Globe and Mail at the weekend also appears to have stirred up a hornet's nest for ATI, according to Reuters reports. ATI "had some problems in meeting our schedules...and we found other suppliers that could better meet (these) schedules," Dell told the newspaper. "We're actually a big customer of ATI and continue to be". It's inevitable that ATI is going to lose OEM supply contracts from time to time. But that didn't use to be the case. The company rose without trace to become the world's biggest supplier of graphic cards, on the back of its dominance in the OEM market. Now it has hot performance brand Nvidia snapping at its heels for OEM contracts, and further down the food chain the 3dfx/STB and Savage/Diamond combos are also putting in credible bids for this business. ® Related story Dead Dell deal costs ATI dearly

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?