AMD Expects APUs to Wipe Out Entry Level Discrete Graphics Cards

Paul Lilly

If you hear Taps playing in the background, don't panic and think it's meant for you. According to AMD, it's entry level discrete graphics

cards that aren't long for this world, not when you have accelerated processing units (APUs) that are more than capable of pushing pixels around your screen. And don't go shedding any tears for low-end videocards, AMD says it's all for the best.

"In the long run, parts of [graphics cards] business will be cannibalized and the low-end discrete GPUs will be replaced with Fusion-type products," Thomas Seifert, AMD's interim CEO, said during a conference call according to XbitLabs . "This is all goodness for us because it replaces low-cost margin revenue with high-gross margin revenue."

Seifert's comments contradict AMD's earlier stance that low-end graphics cards will coexist with integrated graphics, but in the long run, he's probably right. With both major chip makers (AMD and Intel) now integrating graphics hardware into the CPU, it makes sense that eventually the market for low end graphics cards would deteriorate, but not until the vast majority own platforms that support the new generation of processors.

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