AMD warns of 25 percent drop in 4Q sales

[Idontcare]

AMD warns of 25 percent drop in 4Q sales

Chip maker Advanced Micro Devices Inc. warned Thursday its fourth-quarter revenue will drop about 25 percent from third-quarter levels due to weaker-than-expected demand, particularly in the consumer market.

http://biz.yahoo.com/ap/081204...ices_outlook.html?.v=2

Oh this is not good. I'd be really surprised if Intel doesn't announce similiar magnitude of consumer sales slowdown. This receding tide will lower all boats.

 

[Denithor]

Ouch...even with the boost from GPU sales from the 48x0 series they're seeing this kind of dropoff? Wonder what percentage of their revenue comes from GPU sales versus everything else (CPU, chipset, etc).

 

[nerp]

I think the drop in consumer spending is going to hurt everyone in tech.

 

[hans007]

intel already announced a drop. but it was 15%. they sell more corporate pcs. but it was only a preannouncement, who knows it could end up evenw orse.

 

[jones377]

Yeah I think the main reason why AMD reported a bigger expected revenue drop than Intel for Q4 is because they reported much later.

 

[Idontcare]

Originally posted by: jones377
Yeah I think the main reason why AMD reported a bigger expected revenue drop than Intel for Q4 is because they reported much later.

This is my expectation as well. Won't be surprised at all if Intel makes yet another guidance adjustment to the downside as the post Thanksgiving week retail sales numbers hit their distributors.

 

[AmberClad]

Originally posted by: Denithor
Ouch...even with the boost from GPU sales from the 48x0 series they're seeing this kind of dropoff? Wonder what percentage of their revenue comes from GPU sales versus everything else (CPU, chipset, etc).

I don't know exact numbers, but the ATI video cards line of business is a relatively small part of AMD's overall business.

On a sidenote -- happy birthday IDC :gift:

 

[Idontcare]

Originally posted by: AmberClad

Originally posted by: Denithor
Ouch...even with the boost from GPU sales from the 48x0 series they're seeing this kind of dropoff? Wonder what percentage of their revenue comes from GPU sales versus everything else (CPU, chipset, etc).

I don't know exact numbers, but the ATI video cards line of business is a relatively small part of AMD's overall business.

On a sidenote -- happy birthday IDC :gift:

I thought they said it was $400m of last quarter's revenue, or about 1/3 total revenue.

Had not realized my bday shows up But yes its true, another year older but definitely not one year closer to retirement thanks to this economy :laugh: Thanks for the kind thought!

 

[Denithor]

Originally posted by: Idontcare
I thought they said it was $400m of last quarter's revenue, or about 1/3 total revenue.

Had not realized my bday shows up But yes its true, another year older but definitely not one year closer to retirement thanks to this economy :laugh: Thanks for the kind thought!

1 - Good to know, I figured they wouldn't have bought ATi if it wasn't going to add anything to their lineup.

2 - Definitely share the sentiment - my 401(k) is burning money faster than I can load it in!

 

[Idontcare]

Originally posted by: Denithor
2 - Definitely share the sentiment - my 401(k) is burning money faster than I can load it in!

Just tell yourself you are in "accumulation mode". I tell myself that, have been since 2000. Good time to double-up as they say. Of course the salt sellers probably said the same thing on Sept 4, 476 AD.

This stock market stuff pisses me off like no ex-girlfriend has ever.

 

[nyker96]

Sounds like AMD needs to spin off those factories and any assets dragging them down quick! 25% sounds too much loss for a business to sustain. restructuring time.

 

[JackyP]

Accumulation mode, haha. Thank god I've got enough money to spend going through this supposed recession.
Isn't Intel supposed to give us guidance in December, a "mid-quarter report", or was this abandoned after they announced lower earnings so early on?

Originally posted by: Idontcare

Originally posted by: Denithor
2 - Definitely share the sentiment - my 401(k) is burning money faster than I can load it in!

Just tell yourself you are in "accumulation mode". I tell myself that, have been since 2000. Good time to double-up as they say. Of course the salt sellers probably said the same thing on Sept 4, 476 AD.

This stock market stuff pisses me off like no ex-girlfriend has ever.

 

[Roy2001]

Originally posted by: Idontcare
This is my expectation as well. Won't be surprised at all if Intel makes yet another guidance adjustment to the downside as the post Thanksgiving week retail sales numbers hit their distributors.

I projecte Intel Q4 would be 8.5B and Q109 would be 7.2B. All we can hope is Q1/Q2 would be the bottom. It could not be worse, otherwise, everyone hurts.

 

[daveybrat]

Here's to 'hope' that AMD's Phenom II is a hot item. AMD really needs this to be the launch that the first Phenom should have been. If Phenom II is priced right, this could be the life preserver they need.....if not....let's not think about that!

 

[Lonyo]

Intel might suffer less if Atom based low cost machines soak up some of the lost sales and mean they they sell cheaper products, but still sell. AMD doesn't really have anything to cover that market which could be why their drop will be bigger (plus they are the minor player anyway).

 

[Bateluer]

Originally posted by: nyker96
Sounds like AMD needs to spin off those factories and any assets dragging them down quick! 25% sounds too much loss for a business to sustain. restructuring time.

Nah, they'll just get in line in Washington for a bail out like GM, Chrysler, and Ford. :disgust:

 

[Idontcare]

Originally posted by: Roy2001

Originally posted by: Idontcare
This is my expectation as well. Won't be surprised at all if Intel makes yet another guidance adjustment to the downside as the post Thanksgiving week retail sales numbers hit their distributors.

I projecte Intel Q4 would be 8.5B and Q109 would be 7.2B. All we can hope is Q1/Q2 would be the bottom. It could not be worse, otherwise, everyone hurts.

That's some serious reduction in revenue. Can Intel management really weather that without laying off another 10k employees to appease shareholders?