Published in PC Hardware

AMD to sell off its consumer division

by on09 May 2008


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Hector's Motorola affects AMD


We’ve
heard a rumor that AMD is trying to sell off its consumer division, and currently the big issue is that it's tough to sell it and keep some important intellectual property that the company uses to make these chips.


AMD got this division with ATI and in the last few quarters it took a nasty beating, mainly due to bad performance of their key clients. ATI’s biggest customer for handhelds was Motorola, and as this mobile maker is down on its knees it also put AMD in a nasty position. If Motorola comes back, so will AMD’s consumer division.

The second key customer for Xilleon chips is Sony for its Bravia TVs, and as far as we know Sony is doing fine with its TVs.

In Q1 2008 AMD’s consumer division made $81 million and a loss of a modest $8 million, while in Q4 2007 it managed to make $109 million and $12 million profit.

We know that AMD still doesn’t have a serious buyer, but if it finds one it is highly likely that it will sell the consumer division and make itself asset smart or asset light.

Last modified on 09 May 2008
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