Speed not everything says trumped chipmaker

SUNNYVALE - Advanced Micro Devices' speedy computer chips beat Intel at its own game this year. Now analysts say the company has to win at Intel's other strength: marketing.

Once a lagging rival to the top chipmaker, AMD overhauled its manufacturing and held the crown for the fastest PC chips for most of this year. With Intel's new Pentium 4 expected to keep the top spot for months, AMD may need another way to sustain momentum.

Buyers have traditionally used a processor's speed to measure how well a PC performs tasks.

Intel's image took a hit when AMD was the first to introduce an 850-megahertz device in February and then produced chips at 1 gigahertz and beyond. But the Pentium 4 starts as fast as 1.4ghz.

"AMD is going to have to convince consumers that clock speed isn't all that matters, and that's going to be a challenge," said Insight 64 analyst Nathan Brookwood.

Speed emerged as the primary benchmark when PCs ran a handful of basic applications such as word-processing and data entry. As the internet blossomed, that standard did not change.

But some analysts say speed is no longer a good way to judge a processor as the web morphs into a three-dimensional arena for movie viewing and online auctions.

By most accounts, the Pentium 4, unveiled last week, outdoes AMD's flagship Athlon in hefty applications such as 3D games and video editing. Intel promotes the chip as built for "where the internet is going."

Still, analysts said AMD's 1.2ghz Athlon outperformed Intel's new chip on basic programs that consumers use every day.

"The die-hard gamer fanatic should like this machine (the Pentium 4)," Mr Brookwood said. "For most other applications, AMD will continue to lead."

Even so, California-based AMD must convince the undecided computer-user that, even though one chip is faster overall, it is not always better for every task. Recent ads in USA Today and the Wall St Journal highlighted Athlon's design and new performance-boosting features.

That strategy would remain in the wake of Pentium 4, said Mark Bode, marketing manager for Athlon.

A chip's design affects its performance by deciding how instructions are carried out, and AMD says its chips' "architecture" is better.

"Users are becoming increasingly savvy," Mr Bode said. "They really look at what does this system deliver?"

AMD's other advantage is that its chips are about 25 per cent cheaper than similar Intel models. If that pattern holds, steep price cuts may be looming. The 1.4ghz Pentium 4 sells for $US644 ($1608), while the top Athlon was unveiled last month at $612 - just a 5 per cent discount.