AMD, Digital China to open 500 shops in China

Advanced Micro Devices Inc. (AMD) has teamed up with distributor Digital China Holdings Ltd. to tap China’s growing retail market for PC processors through a chain of 500 stores across the country, according to an AMD statement released on Friday.

Formerly the distribution arm of China’s largest PC vendor, Legend Holdings Ltd., Digital China was spun off as an independent company in 2001 and is one of China’s largest IT distributors.

Under the terms of the agreement reached with AMD, Digital China will become a distributor for the Sunnyvale, California, chip maker’s processors in China, the statement said. Digital China will distribute boxed versions of AMD’s Athlon XP, Athlon 64 and Opteron processors, which include the chip, a heat sink, a fan and a three-year warranty, it said.

To promote retail sales of AMD’s processors, Digital China plans to open 500 Digital China-AMD processor stores across China, the statement said.

“It is definitely a good move for AMD,” said Kitty Fok, director of personal systems research at IDC Asia-Pacific. “Digital China has a very good network in China and a very good brand name.”

AMD has been looking to aggressively expand its share of the Chinese market and tapping demand for build-it-yourself or white-box PCs, which typically cost less than branded PCs, could give the company a boost, Fok said.

White-box PCs accounted for 22 per cent of PCs sold in China during the second quarter of 2003, representing sales of approximately US$340 million, Fok said. “China is a very big market and a lot of it is developing, so users are looking for low-cost computers,” she said.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now