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AMD suffers Q3 loss

AMD suffers Q3 loss

AMD's predicted gains for Q3 have turned into a not-inconsiderable loss following poor demand for laptops.

AMD has updated its projections for the third financial quarter, which officially ends tomorrow, and it's not good news: it's suffered a drop which could be as high as four percent.

In a statement, AMD confirmed that it "expects revenue for the quarter ending September 25, 2010 to be in the range of down one to four percent as compared to revenue of $1.65 billion for the quarter ended June 26, 2010," which comes as a nasty surprise following earlier claims that it would be experiencing a seasonal upswing this quarter.

The unexpected dip comes, the company claims, as a result of "weaker than expected demand" across the board - but AMD singles out the laptop market in Western Europe and North America as being particularly bad this quarter.

But why the massive dip? Sadly, AMD's current offerings in the laptop sector - and in particular the company's somewhat power-hungry range of CULV chips for ultra-slim laptops - are struggling to hold a candle to rival Intel's releases, which is making AMD-enabled laptops a harder sell.

The problem is deeper than that, however - and affects the entire industry.

When Apple launched its iPad, only the most ardent Apple fan saw it as being a mainstream success - after all, the device was at its heart not much more than a scaled-up iPod Touch, right?

It now appears that Apple has a runaway success on its hands, with consumers opting to grab one of the slim, sexy pieces of metal and glass instead of a laptop - and it's causing a sales slump across all manufacturers.

AMD's dip, indicative of this trend, isn't unique in the industry - but will comes as a blow to its investors and employees alike.

Are you saddened that AMD appears to be slipping, or will the company rally on the launch of its new lower-cost chips and ahead of the end-of-year sales boom? Share your thoughts over in the forums.

22 Comments

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SaNdCrAwLeR 24th September 2010, 11:29 Quote
any i Product coming from that certain company should be burned to the ground as a waste of money and resources...
that's my 2p
on the news about AMD itself...
this isn't that surprising, considering that people will usually go for the big intel...
if only they had a decent CPU out there =/ (I only owned one AMD CPU... but it was one of my favorite rigs in the good ol' days...)
sb1991 24th September 2010, 11:37 Quote
Let's hope AMD's bobcat based chips bring some competition back into the low power laptop sector- intel has a virtual monopoly currently.
frontline 24th September 2010, 12:35 Quote
They need the Fusion APU products quickly...

or maybe PC World helping them out by advertising a bundle including 'Phenom 925 II X4 Processor' http://www.pcworld.co.uk/gbuk/asus-amd-m4a88t-m-880g-sb710-microatx-motherboard-with-amd-phenom-925-ii-x4-processor-07324717-pdt.html for £169.99

Looked pretty good value, until i looked at the box in store and the sticker had 'Athlon II X3 440' on it...
BRAWL 24th September 2010, 13:15 Quote
iPad's... the worst invention ever. Hyped up pieces of utter trash... Now they're banging on AMD...

If I were AMD, I'd beat it's brother up or something, wail on an ipod or something >.<

------

On Topic: It's a shame really, AMD are getting battered on all sides, except graphics! Lets hope the new cores boost their sales and win some ground back for them =]
Xir 24th September 2010, 13:22 Quote
Quote:
after all, the device was at its heart not much more than a scaled-up iPod Touch, right?
It was, and is...but it wasn't Apple that told that to anyone, right? :D
Snips 24th September 2010, 13:24 Quote
I was walking around Currys yesterday afternoon and noticed an awful lot of the laptops on show were AMD Vision versions from a good mixture of manufacturers. However, the i3 versions did appear to be better spec'd and reasonably priced alternative.

Isn't this what we heard a few months back with a lot of manufacturers preferring the intel/nvidia combo due to fermi and something else nvidia was offering which scaled up a lot better but the name just escapes me.

With only high end cards being the only product AMD has the current crown on, where else can they see profit this next quarter? I'm sure christmas will help though.
Unknownsock 24th September 2010, 14:40 Quote
We need a mass mind control unit, we can get all Ipad users to throw it out there window.
WarrenJ 24th September 2010, 14:47 Quote
Shame, i would really like to buy a new AMD platform. AMD needs to pull something out of bag to compete this year.
Snips 24th September 2010, 14:48 Quote
I think Apple has that already, how else do you think they got people to spend so much money on their new shiny shiny toy?
fata1_666 24th September 2010, 14:51 Quote
Its time for amd to start pushing new products and quickly the turn around time between chips be rumored and confirmed by the press and then some months later when all the heat and excitement has died off there comes a lonely cpu maybe a fancy-ish feature but intels already coined that and its availble in its thousands. + do some p.r work sponsors a t.v show like how its made on geography channel lol, maybe here in bit tech. Zurich helping me with my retirement or amds latest 16 core beast thrashing the beast of Babylon come on fellas....and how many Phenom II's??????
Baggpuss 24th September 2010, 16:17 Quote
I can't say im shocked. AMD have been behind for years when it comes to their processors, and missed out of big new market segments (like netbooks) which Intel all but dominates. Plus on the higher end processor market, they still struggle to come close to the i7 performance and that was released over 18 months ago.
ssj12 24th September 2010, 17:39 Quote
I think that these companies need to learn a new line for their reason for poor sales. "Our customer base are being hurt by the economic melt down. The demand is there, they just can't afford to buy what they want."
Krayzie_B.o.n.e. 25th September 2010, 02:35 Quote
Apple ipad? are you serious? what a waste of money but hey Apple does targets the technology deficient public.

Anyway AMD needs to seriously get their new chip (bulldozer) out to the public ASAP along with their new HD6000 GPU. AMD has to innovate quicker and get their foot in the door on new products before Intel.

The graphics division has done a magnificent job of competing with NVIDIA but the CPU division is moving too slow.

I know AMD is great for bang for the buck but they have to compete on a more level field with Intel or get drowned in Intels blue wave of let's face it SUPERIOR TECHNOLOGY.

or AMD can just sell it's Opteron division to Oracle, take that cash and go balls out against Intel.

Does AMD even make commercials?
AstralWanderer 25th September 2010, 09:57 Quote
Quote:
Originally Posted by
...and AMD's stock price went up by 6.88% on the day.

I know - buy on the rumour, sell on the news (reversing it for bad news).
LightningPete 25th September 2010, 15:27 Quote
the ipad is crap, hardware and software limitations etc and etc.

However despite being a KKK version with hatred to burning the Ipad and wearing black suits (rather than white for apple) This product Ipad appeals to a lot of people.

Simply because now the technology and touchscreen is accepted , the idea of holding and walking around with ur laptop like a newspaper is very appealing. Even if you do want to make your next nazi army against all things apple. You still agree, the technology is clever, and it works.

Although this dipped into a sub-topic / new topic, AMD only have themselves to blame. Why not build chips that are of use in something we use everyday. Mobile phones, chips for your microwaves, PDA's and whatever else. Notice Intel have done this, and are pretty much monopolising on it. Smartphones are in the works to include some Intel chips/chipsets for crying out loud. But we notice NOTHING , not even in the rumour mill of anything other than AMD making more and more 'budget' chips for PC's and especially laptops.
AstralWanderer 25th September 2010, 15:41 Quote
Quote:
Originally Posted by LightningPete
...Why not build chips that are of use in something we use everyday. Mobile phones, chips for your microwaves, PDA's and whatever else. Notice Intel have done this, and are pretty much monopolising on it...
I though ARM were the dominant suppliers for mobiles and ultra-portables.

Chips for these applications have to be designed from the outset for extreme low-power use, you can't just modify an existing x86 design (Intel's Atom has 6 times the power usage of Arm's Cortex A9). Given AMD's limited resources compared to Intel, it's probably better that they stick to their core products rather than spread themselves too thin trying to compete everywhere.
Gareth Halfacree 25th September 2010, 16:26 Quote
Quote:
Originally Posted by AstralWanderer
I though ARM were the dominant suppliers for mobiles and ultra-portables.
It is. ARM-based processor designs have shipped more than all the output of all the x86-based companies *combined.*
Cool_CR 25th September 2010, 18:22 Quote
Yep Apple got the whole on the go Twitter crowed to think (not easy really) hand on a sec i dont need a laptop to web surf and check my email.
AMD need to sort something out i dont see why all the fuss over performance though all they need from what i have seen is a chip that runs like an i7 at about 3.2ghz and can overclock to 3.8 ~ 4ghz it really doesnt need anymore than that case thats the level that sells just get the price right.
Snips 26th September 2010, 13:09 Quote
AMD can no longer be classed as "best bang for buck" anymore. It just doesn't stand up anymore since you can buy cheaper better performing Intel products.

Apart from the 5870, AMD also have been taken on by Nvidia in a big way with just one card GTX460.

With rumours of HD6XXX just being a rework of the HD5XXX, is this really going to be a step forward?

I can't see them going under but I can see them asset selling along with more redundancies, which shareholders like but in the end the product will suffer.

AMD have had a few years now of unrestricted developement and sales after the legal threats to Intel. Have they come any further?
frontline 26th September 2010, 19:04 Quote
Quote:
Originally Posted by Snips

With rumours of HD6XXX just being a rework of the HD5XXX, is this really going to be a step forward?

AMD have had a few years now of unrestricted developement and sales after the legal threats to Intel. Have they come any further?

We'll see in the next few months. A 'rework' of the 5xxx series is maybe all it would take to force prices down on Nvidia's 460 series to unprofitable levels (if it isn't already).

As for the CPU/APU side, they will need to bring something out of the hat early 2011 to ensure that they move in the right direction.
leexgx 27th September 2010, 00:07 Quote
they suffer more from my end if the next 2-3 systems i make are not stable or twitchy (move to intel hardware and Nvidia video cards)
Xir 27th September 2010, 13:13 Quote
Quote:
Originally Posted by AstralWanderer
...and AMD's stock price went up by 6.88% on the day.

Well they've been going down for a quarter now...

Do we need a Tech-Stock thread? :?
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