AMD Cuts Revenue Estimate, Citing Weak PC Sales

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It looks like AMD's stocks took a hit today after the company cut its revenue estimate to below what analysts were expecting.

Chipmaker Advanced Micro Devices Inc lowered its revenue estimate for the second quarter, below analysts' average estimate, saying the demand for personal computers was weaker-than-expected. AMD's shares fell as much as 15 percent to $2.10 in extended trading, after the company also cut its adjusted gross margin forecast for the quarter ended June 27.
 

DarkStar_WNY

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AMD really needs to get it's act together, I want them to get off their asses and give Intel and nVidia a run for the money, which would benefit everyone that is into computers.
 

heatlesssun

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I don't think even strong PC sales would have done AMD much good at this point.
 

DarkLegacy

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They need strong everything sales just to break even these days. Looks like those claims of the company going under soon is holding true still. Not a good thing but an easy prediction seeing how things have been for them.
 

DarkStar_WNY

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The company has been shifting focus to gaming consoles and low-power servers but progress has lagged Wall Street's expectations due to intense competition from Intel and new competitors designing low-cost and power-efficient chips.

I think this quote from the story hit the bulls-eye, although they don't know it.

When AMD did what the quote states, they turned their backs on millions of high end PC enthusiasts who gladly pay top dollar for the fastest components.

Sure something like the TItan X wont sell 100's of millions of units, but they do sell, and even if the margin on them is relatively slim (no idea if it is) but they pay for themselves in other ways. First your name is connected for whatever time period as having the fastest consumer GPU/CPU or whatever, and this will increase sales across your entire product line. Secondly, developing that top shelve part advances your technology and allows you to make CPU, GPUs or whatever, that are almost as fast as that top end one, but considerably less money, which of course also drives sales.
 

CreepyUncleGoogle

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Wait, how can AMD recently (again) claim they aren't focusing on the consumer PC market for various reasons like it not being much of their sales also be adversely impacted by poor PC demand? That doesn't make a lot of sense if they've turned their focus elsewhere.

Beyond that AMD doesn't make lots of sales in desktop PCs and it's really, really hard to find their processors in the much larger mobile segments. You really can't find anything above the bottom end consumer laptop with an AMD CPU in it...well in the US anywho, I dunno if its the same anyplace else.
 

Yakk

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Have to say, AMD is looking like a prime candidate to be bought, x86 licence or not. Their evaluation is really looking cheap for any of the big boys looking to acquire some expertise and patents.
 

kashifme21

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Serves them perfectly. Hope they go out of business. Supporting consoles was the worst decision ever. Just who do they think buys new cpus motherboards, gpus, ram?

Hint its not the moms and pops surfing the internet. Its the gaming industry that buys billions worth of hardware. By supporting consoles you slow down the software industry. Games no longer need powerful pc hardware.

Last gen literally you didnt need a gpu upgrade for 4-5 years an 8800gtx could run most games in 1080p for most of the gen.

With consoles being so weak this gen, expect the same but much sooner. It just will slow the entire industry down. Whats funny amd didnt even make much profit on chips sold to console makers. Instead they slow down the industry there they sell just about every pc part you can list. Too bad for them i hope they go out of business.
 

Saist

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It looks like AMD's stocks took a hit today after the company cut its revenue estimate to below what analysts were expecting.

... what... analysts?

AMD has been doing BUPKUS to get their chips into Android and ChromeOS products; basically the only market segments that are sustaining worldwide sales growth. Every analyst worth their salt knew that AMD's earnings were going to be weak because the company still hasn't dropped their obsession with Microsoft.
 

Chris_B

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Serves them perfectly. Hope they go out of business. Supporting consoles was the worst decision ever. Just who do they think buys new cpus motherboards, gpus, ram?

Hint its not the moms and pops surfing the internet. Its the gaming industry that buys billions worth of hardware. By supporting consoles you slow down the software industry. Games no longer need powerful pc hardware.

Last gen literally you didnt need a gpu upgrade for 4-5 years an 8800gtx could run most games in 1080p for most of the gen.

With consoles being so weak this gen, expect the same but much sooner. It just will slow the entire industry down. Whats funny amd didnt even make much profit on chips sold to console makers. Instead they slow down the industry there they sell just about every pc part you can list. Too bad for them i hope they go out of business.


AMD go out of business and nvidia get to pound us all in the ass long and hard all day long. Engage your brain before spouting off crap.
 

kashifme21

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AMD go out of business and nvidia get to pound us all in the ass long and hard all day long. Engage your brain before spouting off crap.

Market will determine fair value. Intel has no competiton from Amd, yet u dont see them out pricing the market. In fact its intel cpus that have become comeption for intel.

Same will happen for nvidia. Good ridance Amd goes out of business.
 

crusty_juggler

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AMD go out of business and nvidia get to pound us all in the ass long and hard all day long. Engage your brain before spouting off crap.

I find it hilarious that you think AMD competes with Nvidia in the first place. This nightmare scenario that Nvidia haters have been contemplating, where Nvidia gets to do whatever it wants to due to having no competition in the discrete GPU market, has already happened.

AMD competes with Nvidia in the same way a nail competes with a hammer. The fact is, there is NO competition in the discrete GPU market. Nvidia overwhelmingly dominates it while AMD fends for scraps.
 

DPI

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AMD go out of business and nvidia get to pound us all in the ass long and hard all day long. Engage your brain before spouting off crap.

Having AMD around is good for Nvidia customers, but the idea that AMD getting out of the GPU market meaning Nvidia prices are suddenly a runaway train...is a myth. There are still limits to what people will pay.

Intel has basically no competition from AMD in the CPU market, has Intel chip pricing been a runaway train? No. Still pretty reasonable.
 

Araxie

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a bit of misleading interpretation.. AMD is only crying because APUs doesn't sell well, from the article:

Forbes said:
Van Hees said a weak PC market coupled with competition from Intel weighed on demand for the company's APU chips.

and that's what happens when a company decide to abandon the CPU market and just focus in crap APUs.
 

kashifme21

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a bit of misleading interpretation.. AMD is only crying because APUs doesn't sell well, from the article:



and that's what happens when a company decide to abandon the CPU market and just focus in crap APUs.

Exactly Amd need to learn there isnt much growth in the casual pc market. Why? Because anything people want to do like surfing the web or working on ms office can be done old hardware or can be done or andriod devices. Hence that sector doesnt need to upgrade very often infact they dont upgrade until their machine breaks down.

Its the gaming industry that spends billions. No gamer in their right mind will buy a apu for gaming. Niether will they buy amd gpus with how bad they have gotten on the hardware and driver support.

In fact Amd is like the cancer of the industry. By supplying crappy hardware to console makers they have slowed progress for the entire industry. Its just the start of a gen and 1080p is walk in the park for new gpus. Its not until we for 4k do we stress the current crop of gpus. This is all happening because developers first develop for crappy console hardware. In todays world a gtx 750ti gives ps4 a run for its money on a game like witcher 3. So yea if software isnt going to push hardware you can forget pc gamers buying newer cpus, gpus, mbs, ram etc
 
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they made a amd fiji for same price as a 980ti but not out perform it and they expect to make a big profit on that ?

are they kidding ?

only thing they got going for that is if people want to opt for freesync if they can get it cheaper than gsync monitor and even then it's argued that gsync implementation is more matured than freesync especially when handling below the vrr window minimum.
 

Aireoth

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Exactly Amd need to learn there isnt much growth in the casual pc market. Why? Because anything people want to do like surfing the web or working on ms office can be done old hardware or can be done or andriod devices. Hence that sector doesnt need to upgrade very often infact they dont upgrade until their machine breaks down.

Its the gaming industry that spends billions. No gamer in their right mind will buy a apu for gaming. Niether will they buy amd gpus with how bad they have gotten on the hardware and driver support.

In fact Amd is like the cancer of the industry. By supplying crappy hardware to console makers they have slowed progress for the entire industry. Its just the start of a gen and 1080p is walk in the park for new gpus. Its not until we for 4k do we stress the current crop of gpus. This is all happening because developers first develop for crappy console hardware. In todays world a gtx 750ti gives ps4 a run for its money on a game like witcher 3. So yea if software isnt going to push hardware you can forget pc gamers buying newer cpus, gpus, mbs, ram etc

This. All the fan boy bickering aside, the crappy consol iteration will hold games back to 1080p until the next cycle. Only idiots like us buy high end hardware
 

DarkStar_WNY

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Having AMD around is good for Nvidia customers, but the idea that AMD getting out of the GPU market meaning Nvidia prices are suddenly a runaway train...is a myth. There are still limits to what people will pay.

Intel has basically no competition from AMD in the CPU market, has Intel chip pricing been a runaway train? No. Still pretty reasonable.

What you overlook is that although AMD isn't putting up much of a fight their existence gives buyers choices and Intel needs to be sure not to price itself out of the market. Even after the GTX 980 was release the 290X still sold strongly based on having most of the speed of the 980 at a considerably lower cost, in fact many bought 2 290Xs for the price of many of the 980s.
 

Chris_B

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Market will determine fair value. Intel has no competiton from Amd, yet u dont see them out pricing the market. In fact its intel cpus that have become comeption for intel.

Same will happen for nvidia. Good ridance Amd goes out of business.

I find it hilarious that you think AMD competes with Nvidia in the first place. This nightmare scenario that Nvidia haters have been contemplating, where Nvidia gets to do whatever it wants to due to having no competition in the discrete GPU market, has already happened.

AMD competes with Nvidia in the same way a nail competes with a hammer. The fact is, there is NO competition in the discrete GPU market. Nvidia overwhelmingly dominates it while AMD fends for scraps.



Clueless.
 

Ur_Mom

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When AMD did what the quote states, they turned their backs on millions of high end PC enthusiasts who gladly pay top dollar for the fastest components.

I won't consider an AMD CPU anymore. Just not competitive. As far as GPU, that's all I've ran for the past decade or so. I'm seriously considering going Green the next upgrade. I probably will. AMD just isn't innovating or bringing anything worthwhile to the table.
 

Parmenides

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Market will determine fair value. Intel has no competiton from Amd, yet u dont see them out pricing the market. In fact its intel cpus that have become comeption for intel.

Same will happen for nvidia. Good ridance Amd goes out of business.

I find it hilarious that you think AMD competes with Nvidia in the first place. This nightmare scenario that Nvidia haters have been contemplating, where Nvidia gets to do whatever it wants to due to having no competition in the discrete GPU market, has already happened.

AMD competes with Nvidia in the same way a nail competes with a hammer. The fact is, there is NO competition in the discrete GPU market. Nvidia overwhelmingly dominates it while AMD fends for scraps.

Foolish. There's always competition no matter how weak it is. What's that? Your taking a % of my revenue hoping to increase it? There still is competition. That's fine if you want to call AMD the starving child fighting for scraps, but that's how you kill them off. Keep prices low enough, so that your competition starves to death. Of course Nvidia and Intel won't run away with their prices just yet.
 

crusty_juggler

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Clueless.
If you and I play 1-on-1 basketball every weekend, and you only win 20% of those matches, would you consider it a competition? I would call that a total drubbing. AMD controls less than 25% of the discrete GPU market, some estimates put it as low as 20%. They in no way compete with Nvidia.

Nvidia does not have any competition in the discrete GPU market. They own it. Where is the "ass pounding" you claim will be the result of Nvidia standing unopposed? Again, Nvidia already stands unopposed.
 

Ur_Mom

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If you and I play 1-on-1 basketball every weekend, and you only win 20% of those matches, would you consider it a competition? I would call that a total drubbing. AMD controls less than 25% of the discrete GPU market, some estimates put it as low as 20%. They in no way compete with Nvidia.

Nvidia does not have any competition in the discrete GPU market. They own it. Where is the "ass pounding" you claim will be the result of Nvidia standing unopposed? Again, Nvidia already stands unopposed.

Who are the competitors with Windows? OSX & Linux? Windows is the main product there.
What about phones?

It's a competition, no matter what the spread is. They may be losing, but that's part of a competition.
 

Yakk

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ROFL...

Wonder what the reason might be for the 980ti to be priced at $650 or even released at all?

And the 920 i7 if still competitive 6 years later... Talk about a slowdown in development without competition...
 

SvenBent

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Having AMD around is good for Nvidia customers, but the idea that AMD getting out of the GPU market meaning Nvidia prices are suddenly a runaway train...is a myth. There are still limits to what people will pay.

Intel has basically no competition from AMD in the CPU market, has Intel chip pricing been a runaway train? No. Still pretty reasonable.


but also the slowest speed improvement ever from generation to generation soo yeah price didn't went up but performance per buck increase went down to almost a flat curve..

its kinda like aruging that prices didn't go up because you are still only playing 5 buck like before but only getting half the amount...
 

Ur_Mom

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And the 920 i7 if still competitive 6 years later... Talk about a slowdown in development without competition...

Which makes me wonder what Intel has behind closed doors. Yea, the longer they keep it the less it's going to make after the large R&D investment. But, they can still sell it as cutting edge even though it's been done for years. AMD comes out with Nutscraper with Ass Optimization, and Intel blows them away with i10 Core Series.
 

kashifme21

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Which makes me wonder what Intel has behind closed doors. Yea, the longer they keep it the less it's going to make after the large R&D investment. But, they can still sell it as cutting edge even though it's been done for years. AMD comes out with Nutscraper with Ass Optimization, and Intel blows them away with i10 Core Series.

Well to be fair we are facing an industry slow down. Name me any game that the i7 920 cant run ? There is none. I7 920 is still relevant because people who buy computers to work and surf the web dont need the power.

Its gamers who need to cpus. Now please tell me how are cpu requirements going to go up when consoles are limited to tablet cpus. So there u go. Thats the reason why we dont need cpu upgrades. I am still running an i 7 920 in one of my old pcs. My newer pc features a i 7 3930k which too is 3 years old now, i wont be upgrading since no game needs the power simple as that.
 

Ripskin

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I won't consider an AMD CPU anymore. Just not competitive. As far as GPU, that's all I've ran for the past decade or so. I'm seriously considering going Green the next upgrade. I probably will. AMD just isn't innovating or bringing anything worthwhile to the table.

I've loved my 5850 and 7970 but was hoping the 3 series would bring something to the table. Looks like I'll be going green again as well.
 
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I think this quote from the story hit the bulls-eye, although they don't know it.

When AMD did what the quote states, they turned their backs on millions of high end PC enthusiasts who gladly pay top dollar for the fastest components.

Sure something like the TItan X wont sell 100's of millions of units, but they do sell, and even if the margin on them is relatively slim (no idea if it is) but they pay for themselves in other ways. First your name is connected for whatever time period as having the fastest consumer GPU/CPU or whatever, and this will increase sales across your entire product line. Secondly, developing that top shelve part advances your technology and allows you to make CPU, GPUs or whatever, that are almost as fast as that top end one, but considerably less money, which of course also drives sales.

I would just like to point out that there are not millions of high end pc gaming enthusiasts, this is not a bad thing by any means, however. We are the hot rodders of the industry. Our stuff is low volume, high margin components. I would even venture to guess that nvidia and amd font even recoup the development costs from sales of their highest end products, but since there are redundant technologies across their whole line that's how they make it up.
 

Yakk

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Which makes me wonder what Intel has behind closed doors. Yea, the longer they keep it the less it's going to make after the large R&D investment. But, they can still sell it as cutting edge even though it's been done for years. AMD comes out with Nutscraper with Ass Optimization, and Intel blows them away with i10 Core Series.

Oh, I'm sure Intel has more than a few projects on stand-by in case something unexpected happens and they need to accelerate their release cycle, but without a need they will just most likely stay projects in labs with only the most cost effective being slowly released to milk the market as much as possible. We see this already.

Nothing new here, any company will do the same. With no sense of urgency, and plentiful margins shareholders are happy so no unnecessary risks are taken in order to advance their market position. Maybe the OS cash grab here and there, cause they can.

... And then stagnation sets in...
 

buttons

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If you and I play 1-on-1 basketball every weekend, and you only win 20% of those matches, would you consider it a competition? I would call that a total drubbing. AMD controls less than 25% of the discrete GPU market, some estimates put it as low as 20%. They in no way compete with Nvidia.

Nvidia does not have any competition in the discrete GPU market. They own it. Where is the "ass pounding" you claim will be the result of Nvidia standing unopposed? Again, Nvidia already stands unopposed.

Pretty sure Intel owns the GPU market share. This puts Nvidia / AMD on much close footing then you think.

Intel has 67%. I know what your thinking, intel? their GPU is garbage, but every generation its been gaining a lot of ground on AMD APUs. Hell, we are already at a point that you can game pretty comfortably on a surface pro 2. No i dont mean Witcher 3 on ultra, but good games that are somewhat modern, call of duty, rift, world of warcraft, star craft 2, diablo 3, etc

If intel keeps this pace it wont be to long before you can play modern games at 1080p on high with just embedded graphics.

http://jonpeddie.com/press-releases...at-and-amd-loses-graphics-market-share-in-q1/
 

Ur_Mom

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Well to be fair we are facing an industry slow down. Name me any game that the i7 920 cant run ? There is none. I7 920 is still relevant because people who buy computers to work and surf the web dont need the power.

Its gamers who need to cpus. Now please tell me how are cpu requirements going to go up when consoles are limited to tablet cpus. So there u go. Thats the reason why we dont need cpu upgrades. I am still running an i 7 920 in one of my old pcs. My newer pc features a i 7 3930k which too is 3 years old now, i wont be upgrading since no game needs the power simple as that.

Still running a 2600K here. There is no reason to upgrade. I can run anything just fine. Most modern apps for general use don't get much, if any, improvement from an i7 2600K to a kick ass i7 5960. Office work is the majority of computing use. That, and internet browsing. That doesn't take a whole lot.

Software has got to the point where it's fast. Hardware is fast but nothing to really push it. Gaming is catching up, but is more dependent on GPU these days...
 
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Hardware is fast but nothing to really push it. Gaming is catching up, but is more dependent on GPU these days...

That's only because too many games are focusing on graphics at the expense of gameplay. Advanced gameplay mechanics, which involve AI and simulation, are going to utilize the heck out of the CPU. Lots of strategy and simulation games, of many types, still use 100% of the CPU cores they are programmed to use, even with the latest CPUs. Other genres would also fully utilize all CPU cores if they were still advancing gameplay mechanics.
 

defaultluser

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I thought the enthusiast market was really strong...

Oh wait.. AMD...

Only the ultra-high-end is the enthusiast market healthy and stable. Discrete graphics cards overall have been falling for the last decade (especailly the midrange ($200-400 segment), which is the bread-and-butter).

AMD knew when they bought ATI that it was a losing proposition, and yet they bought anyway because they had hopes and delusions of being Intel.

Instead of trying to be Intel, they could have spent those 6 Billion dollars reinventing themselves. What a fucking waste.
 
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