AMD Follows Intel; Warns On Q3 Profits

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News Posted: Sun, Sep 26 2010 11:07 PM
When Intel announced it would miss its Q3 targets in late August, there was speculation as to whether or not AMD would escape the same fate. With the third quarter having officially ended, the answer is no. According to a statement the company made late last week, revenue will be down 1-4.5 percent compared to second-quarter revenue of 1.65 billion. AMD didn't provide much detail on the change, saying only: "The sequential decrease is due to weaker than expected demand, particularly in the consumer notebook market in Western Europe and North America."

AMD's new mobile processing is supposed to pack a punch, but that only helps if people buy them.

AMD picked up a significant bit of notebook share in Q2 and is planning to launch its new mobile processor, Ontario, in Q4. Atom's sales have pingponged back and forth over 2011; it's hard to predict why both manufacturers have seen sales decline. We've previously covered news that Best Buy has seen iPad sales cannibalizing notebook products, but that's unlikely to have dramatically hit notebook CPU sales. As popular as Apple's tablet has been, it's not enough to tilt the market single-handedly.
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Optix replied on Mon, Sep 27 2010 10:05 AM

I could understand if it was because of substandard performance but AMD has been putting out some great stuff and with Ontario right on the door step it's sad to see that something the company has no control over is poised to take some wind out of their sails as they were just starting to gain some ground.

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lonewolf replied on Mon, Sep 27 2010 12:17 PM

I think most consumer laptops and desktops now days are powerful enough for the task most users need. Only companies with high end servers are upgrading and such and this is my speculation as to why sales have dipped. Windows 7 should have boosted sales sequentially but that does not appear to be happening.

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