i'm starting to get it now. basically intel is capable of a higher IPC? if that's the case where did AMD go wrong, besides with the modules design?
The community still debates whether the module design was bad or not, actually. It was actually a step backwards in terms of IPC (the Phenom II X4 and X6 CPUs are just as good as the current FX CPUs), but since it was such a unique design, I'm sure it has tons of room for improvement.
A lot of it comes down to money. From the latest quarterly reports:
Intel Corporation today reported second-quarter revenue of $12.8 billion, operating income of $2.7 billion, net income of $2.0 billion and EPS of $0.39. The company generated approximately $4.7 billion in cash from operations, paid dividends of $1.1 billion, and used $550 million to repurchase 23 million shares of stock.
AMD (NYSE:AMD) today announced revenue for the second quarter of 2013 of $1.16 billion, an operating loss of $29 million and a net loss of $74 million, or $0.10 per share. The company reported a non-GAAP operating loss of $20 million and a non-GAAP net loss of $65 million, or $0.09 per share.
They just don't have the R+D money to compete with Intel.
Part of it stems from when they tried to buy NVIDIA, the deal fell through and they panicked a bit and bought ATI for much more than it was worth. I guess they were looking for towards the future for the APU concept, but it took a rather long time for the APUs to come to market. Remember that most of the money is in power efficiency for laptops, not really the desktop market.