AMD's Revenue Drops 31 Percent as CPU Sales Plummet

CommanderFrank

CommanderFrank

Cat Can't Scratch It
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Thursday’s news of a 31% drop in revenue from AMD wasn’t all that unexpected due to the continuing downturn of the PC market and AMD’s lackluster sales figures. The downturn has affected many of the industry’s component manufacturers, but has hit AMD particularly hard this year.

Intel is also suffering, but not as much as AMD. Intel reported a 25 percent drop in profit earlier this week, on a 2.5 percent decline in revenue.
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I hope the best for AMD. The industry needs competition and Intel can't be trusted with a monopoly.
 
Temash, Kabini, and Brazos 2.0 needs to succeed when they're released. The problem is having OEMs pick them up for tablets and ultrabooks. A lower-priced Windows 8 tablet with an AMD APU that's lower priced than an Intel-based model would help AMD here. It's just about getting those OEM tablet makers to use these APUs. AMD needs to push for that or they will not survive. The same goes with the ultrabooks that'll probably use Kabini-based APUs and notebooks with Richland APUs.

Here's hoping that it swings in AMD's favor this year.
 
Ouch hope they can still say in the market with both cpu's and gpu's..
 
As bad as it sounds, if you read the end, it's actually better then what they what people were forecasting. While they still had a net loss of 140 million it was much better then last years 590 million for the same quarter. So yea its bad but not as bad as it could be and very well could get better.
 
On the other hand.. if there suddenly is no competition for Intel or Nvidia they will be slower to release new tech, and game developers might actually have to think about optimizing their code to get better results from older hardware like they do on consoles. However, (insert preferred deity or philosophical leaning) help you if you ever want to upgrade...
 
I bought Intel on my newest build, AMD just sucks. AMD, do better like the first dual-core serious you did.
 
AMD won't be going away anytime soon. The decline in pc sales hurts, but they seem to be working on other avenues of business to stay in the game. Their focus on APU's for the mobile market I think was a step in the right direction. The contracts they have for the PS4 and Xbox Next should keep them going for a few years to come if nothing else.
 
Even in this economy that is pretty bad. I was surprised to see that Intel's loss was actually pretty high as well.
 
AMD isn't really a competitor to Intel or Nvidia. They are one step behind either company. Or two steps. Or a couple of miles, in some cases. AMD should target OEM builders and stop trying to keep up with the big boys. They didn't make anything decent in the PCU market since FX60, and that was hella expensive. They offerings in the GPU market are similarly subpar.
 
AMD is still great for builders on a budget, but their flagship 8 core CPU is getting stomped by an Intel quad core. After using AMD chips since the old K-6's, my next build is going to be an Intel chip. Why? Core i7 3770K for $220, that's why.
 
codeflux said:
AMD isn't really a competitor to Intel or Nvidia. They are one step behind either company. Or two steps. Or a couple of miles, in some cases. AMD should target OEM builders and stop trying to keep up with the big boys. They didn't make anything decent in the PCU market since FX60, and that was hella expensive. They offerings in the GPU market are similarly subpar.
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While I won't argue much in the CPU department, the GPU side is completely opposite. For soo many months AMD was trumping Nvidia in every segment in the Bang/Buck dept. Hell it wasn't until TITAN that Nvidia took the crown back for sure.
 
I remember AMD almost being in the toilet when the Athlon came out, suddenly they were the CPU to beat for four years (even with a lack of real support from the motherboard manufacturers at first).
 
thewooster said:
Even in this economy that is pretty bad. I was surprised to see that Intel's loss was actually pretty high as well.
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Yeah, both Intel and AMD have gone done.

ARM, Qualcomm, Samsung, LG, and Google have gone up.

Two words: Tablets and smartphones.

If AMD and Intel releases an x86 mobile processor that can compete on ARM in both price and power consumption for use in smartphones or just tablets, then they may fare better. AMD is hoping to do this with Brazos 2.0 and Temash, with Kabini going into ultrabooks. Intel is hoping the same with Bay Trail Atoms and Haswell for tablets and ultrabooks respectively.

The problem is one single word: price.

Price. Price. Price. Price.

It cannot be said or emphasized enough, and I've said it before in another forum post. Both AMD and Intel, and their OEM tablet and ultrabook manufacturers need to get these prices down if they hope to succeed against the like of ARM and their OEMs. The new Toshiba Kira tablet with a 13-inch 2560x1440 ultrabook is priced in the Macbook Pro range. That's not going to swoon many customers in this economy except for the business elite. Windows 8 tablets start at $549 with an Intel Atom and can go as high as $1400.

They're competing against tablets that serve maybe 70% to 80% of the functionality of a $500 to $700 notebook for the price of $200 to $300 at MINIMUM. And, these are tablets based on Android and an ARM SoC processor no faster than an Atom of the same frequency.

These companies need to wisen up, suck it in, and lower their damn prices if they hope to compete and survive against mobile devices.

An $800 to $2500 ultrabook isn't going to help especially if many of them do not have touchscreen LCDs to help push Windows 8 out there. A $500 to $1400 tablet is going to target only those that can afford an x86 Windows 8 tablet. But, when a $200 to $400 Android tablet, or a lower-end Apple iPad, can do 70% to 80% of that Windows 8 tablet's functionality in day-to-day use, you lose.

Again, OEMs and mainly Intel, and less so AMD, need to lower the prices of their SoCs, processors, and tablets and ultrabooks if they want to compete on an even footing against the likes of Samsung, LG, Apple and Google, and anything with ARM in it.

Price, again, trumps everything else and is the deciding factor for the majority of the consumers out there.
 
So, with their business failing that rapidly... are the console makers going to stick with them for the next gen? There may be no guarantees that all the money invested will produce a product instead of... nothing and bankruptcy.
 
Advil said:
So, with their business failing that rapidly... are the console makers going to stick with them for the next gen?
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Sure, why not? If the console makers have licensed the APUs or GPUs, it's not necessary for AMD to have further involvement until the manufacturers want to shrink the chips using newer fabrication processes.

And even if AMD went belly up, it's not like someone won't buy up the parts. Any ongoing royalties, and/or design work if some team is part of the deal, can be picked up by the new owners. I can imagine few, if any, companies which would buy AMD whole, but there are several processor makers who are potential buyers for AMD's MPU (for IP) and GPU (for IP and products) business units.
 
This is what happens when a company settles for 2nd best in it's key market, and actually makes the boneheaded move of actually announcing that fact in a PR release! If Intel significantly dropped prices, AMD would collapse.

Concentrate on the GPU business, and sell off the CPU business. If you can't/won't compete, then don't even try.
 
pxc said:
Sure, why not? If the console makers have licensed the APUs or GPUs, it's not necessary for AMD to have further involvement until the manufacturers want to shrink the chips using newer fabrication processes.

And even if AMD went belly up, it's not like someone won't buy up the parts. Any ongoing royalties, and/or design work if some team is part of the deal, can be picked up by the new owners. I can imagine few, if any, companies which would buy AMD whole, but there are several processor makers who are potential buyers for AMD's MPU (for IP) and GPU (for IP and products) business units.
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The problem though is that Intel has forbidden transfer of AMD's x86 license to any new owner since that $1 billion dollar settlement years ago.

AMD's processors and APUs die with them if they go belly up, along with their x86 license. Someone would have to pick up a new x86 license and the processor designs second. If going by someone else's post and explanation in the AMD forum, an x86 license application process isn't easy and the investment into an x86 processor design and manufacturing is too risky and too great. It's like Intel purposely made it difficult to get into the x86 processor business by anyone NOT Intel.
 
octoberasian said:
The problem though is that Intel has forbidden transfer of AMD's x86 license to any new owner since that $1 billion dollar settlement years ago.
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The updated license agreement had a couple of large changes: it allowed AMD to push off a larger share (like 100% now) of manufacturing to foundries and also allows AMD to transfer its x86 license*, as long as Intel approves the buyer**. IOW, AMD's processor business can be sold and the x86 license transferred.

* this often confuses people. It's not an ownership of the x86 instruction set, but of patented implementations and cross-licenses of technology.

** this may seem like a 100% veto, but anti-trust concerns will make blocking a valid deal unlikely.
 
pxc said:
The updated license agreement had a couple of large changes: it allowed AMD to push off a larger share (like 100% now) of manufacturing to foundries and also allows AMD to transfer its x86 license*, as long as Intel approves the buyer**. IOW, AMD's processor business can be sold and the x86 license transferred.

* this often confuses people. It's not an ownership of the x86 instruction set, but of patented implementations and cross-licenses of technology.

** this may seem like a 100% veto, but anti-trust concerns will make blocking a valid deal unlikely.
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That's good news.

I wonder when they changed the license agreement. Because when I read that court settlement legal jargon PDF, it seemed clear Intel did not want anyone to get their hands on AMD's x86 license at that time. It's as if Intel didn't want anyone competing against them besides AMD. And, if AMD went down, Intel wouldn't have any major competitor against them. (Let's forget VIA as being "major" competitor here...)
 
Why are so many people saying AMD should go into Ultrabooks ? Intel would never let them get that certification.
 
Simmonz said:
Why are so many people saying AMD should go into Ultrabooks ? Intel would never let them get that certification.
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If going by Intel's definition of a ultrabook that they defined (well, re-defined) themselves a few weeks ago, then, no, AMD will not get into that constricted, restricted definition set up by a monopoly such as Intel.

However, ultrabooks have been here for years, and there's no reason AMD will not be a part of it. They've already announced months ago that they will use Kabini APUs for it, not sure about Richland APUs.
 
It's difficult to find an OEM machine (portable - laptop, tablet, convertible) that has an AMD lately. At least, the Win8 machines I've been looking at. Sure, I can find a lot of $300-400 laptops with a cheap AMD. But, anything above that, it's difficult.

AMD was great for a while with the A64. But, the Core series took the crown back. You just can't beat the Core i series from Intel on a performance system.

I'd love to see AMD make a comeback again. I'm not sure if it's bad business (not focusing on OEM's), lack of R&D to create something better, or just lack of a good processor. :/
 
Simmonz said:
Why are so many people saying AMD should go into Ultrabooks ? Intel would never let them get that certification.
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AMD launched its own similar platform, twice already, and it hasn't really taken off. While AMD did showcase ultraportable models with long battery life, many of the released models have very low end CPUs, mediocre battery life, and other than being slightly lighter, don't really offer more than mainstream low end models. Add in zero marketing and the disappointing sales shouldn't be a surprise.

While there are some nice Ultrabooks, too bad many in the lower price ranges lack SSDs and 6+ hour battery life. Ultrabook sales haven't been too hot for Intel either so far (only 5% of laptop sales are Ultrabooks as of a few months ago, and most of those are in the "very good" book category ;)).
 
Intel the Silverback Gorilla and AMD the Recess Monkey. Monkey is gone get pummeled.

AMD needs to get into ARM.
 
Wrench00 said:
Intel the Silverback Gorilla and AMD the Recess Monkey. Monkey is gone get pummeled.

AMD needs to get into ARM.
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They bought into ARM last year, and are planning on producing a 64 bit ARM processor for the ultra-low power sever sector.
 
hopefully amd can survive for one more year

they delayed certain death a little this quarter by not losing as much as predicted.
 
amd is doing better than expected! it beat wall street expectations meaning the company is getting its self on a more solid footing.

this year amd is releasing 28nm products starting at computex with jaguar cores and an updated 32nm richland apu. Then finally the 28nm steamroller core is releasing in November of this year. Furthermore Amd has Microsoft and Sony consoles also releasing this year showing some impressive custom ultra high bandwidth apu's. to the intel/nvidia trolls you cant compare off the shelf parts to these custom chips period. the new console generation is far above the outgoing one.

Next on the list is Globalfoundries has a 22nm process on its roadmap and more on that here http://www.pcper.com/reviews/Editorial/GLOBALFOUNDRIES-2013-and-Beyond . Finally former amd'rs are returning to company http://www.pcper.com/news/General-Tech/Raja-Koduri-Returns-AMD-After-4-Years-Apple this would not be happeniong if the company was heading to bankruptcy. amd is improving that is all it needs to do to get back into the black even if it is a little bit at a time.
 
It's fairly amazing the number of people who apparently aren't old enough to have seen world-wide economic downturns before and what they do to people's discretionary spending habits...! Sorry, but the PC isn't "dying" anytime soon (what's with people being so emotionally invested in this non-issue, anyway?) Portable devices are in no danger of replacing PCs for the simple reason that they can't. Large, comfortable keyboards and mice with accuracies of thousands of dpi (incalculably more accurate than a human finger), and 24"-30" monitors--just to mention a handful of the many features desktops have that portables don't--aren't going anywhere--and neither is the PC. But I guess that when you haven't seen these economic cycles before it certainly *looks* like PCs are "going away," sort of. I mean, looking at the housing market the same way--you'd also have to say that houses are disappearing, too...;) An entire litany of products and services suffer when the economy downturns...PCs are just one of a manifold many products like that. When the cycle reverses then PC sales, as well as the sales of many other products and services, will spike in the opposite direction.
 
Advil said:
So, with their business failing that rapidly... are the console makers going to stick with them for the next gen? There may be no guarantees that all the money invested will produce a product instead of... nothing and bankruptcy.
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AMD will jettison the Graphics division (ATI) with its contracts for console chips in tact. In fact I suspect that's how they managed to undercut NVidia. They Plan to shaft AMD with the investment costs on facilities to make those chips, and then ATI, MS & PS4 laugh all the way to the bank.
 
jpm100 said:
AMD will jettison the Graphics division (ATI) with its contracts for console chips in tact. In fact I suspect that's how they managed to undercut NVidia. They Plan to shaft AMD with the investment costs on facilities to make those chips, and then ATI, MS & PS4 laugh all the way to the bank.
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what the hell are you people on cause seriously pass me some of cause it has to be some mind blowing drugs...

first off ati is no more amd and ati are a fully integrated single entity so their will be no resurgence of ati period.

second off if amd is such a sinking ship tell me why former amd exec's that where working for apple a company with $200+ BILLION in the bank. decided to leave the safe land of apple and rejoin amd. Things are not as dire as you crack headed flame-bait anti-amd trolls that have written amd.

Did any of you see that amd beat wallstreets expectations this quarter?! Amd is making the necessary decisions and taking the steps to get its self back into the black.

what does the future hold well computex we will see richland that will destroy haswell in the graphics department. Also for computex amd is releasing its 28nm temash and kabani 2-4 core apu's with total performance that will dominate the mobile sector as arm and intel has nothing to compete with it.

towards the end of the year we will see the PS4 and 720 releases with custom high bandwidth apu's. you cant compare them to off the self parts so dont even bother... finally the last two products this year is the 8xxx series of radeon gpu's and amd will fianlly be releasing its 28nm HSA complient Steamroller APU.

Amd is not going anywhere and definitely not heading to bankruptcy or a buy out or breakup of the company. keep dreaming trolls
 
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