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Friday, 24 September 2010 09:30

AMD lowers Q3 forecast

Written by Fudzilla staff

Weak demand to blame
AMD has officially lowered its Q3 outlook and it expects revenues to drop by 1 to 4 percent for the current fiscal quarter, which ends tomorrow, September 25.

The chipmaker had originally expected to report seasonally stronger revenues in Q3, however, weak demand in the consumer market has forced it to revise its outlook. AMD is not the only company affected by the slower than expected recovery, as Intel has also reduced its optimistic forecast some time ago.

Analysts are somewhat concerned about recent developments, as the economic recovery doesn’t seem to be progressing quite as well as expected. Apparently consumers are still far from enthusiastic and many in the market are worried about a double-dip depression.

It’s worth noting that AMD has managed to sail through very tough times in recent quarters and that it’s looking much better than a year or two ago despite this setback.

Fudzilla staff

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+23 #1 Bl0bb3r 2010-09-24 10:47
Well, given that they announced several new platforms to be launched this year's end and next year, probably most consumers wait it out, that also translates to lower revenues in such times. I know I'm waiting...
+15 #2 Wolfesteinabhi 2010-09-24 11:24
yep add me too ..lol :D ..i am refraining myself from buying Crosshair IV + 1090T + 5850 ..just coz of AM3r2 n 6800 :P
+14 #3 Super XP 2010-09-24 11:25
That makes sense. I think there's a lot of bargain hunters waiting too. Once AMD releases new hardware the old stuff will drop in price.
-19 #4 DarkPhoenix 2010-09-24 13:24
Quoting Bl0bb3r:
Well, given that they announced several new platforms to be launched this year's end and next year, probably most consumers wait it out, that also translates to lower revenues in such times. I know I'm waiting...

You're kidding right ? We're still in the middle of a recession and you think that they lower their forecast, because "people are waiting to buy new stuff and so are skipping the old" ?

Some people really lost touch with reality...
+2 #5 GrumpyOldMan 2010-09-24 14:36

Usually the survival method alot of companies use in this recession is to make low forecasts.

Revised lower, if you beat the street estimates, the company gets a boost. If they fail..........pain and more pain!!

+2 #6 Bl0bb3r 2010-09-24 15:05
Quoting DarkPhoenix:
you think that they lower their forecast

No you idiot... I couldn't care about them lowering anything.

I was talking about their actual earnings, not their financial babbling.

They haven't been that lucky in cashing in as much as anticipated because:

1) People that have money and want to buy new stuff won't jump the gun right before Bulldozer and Sandy Bridge begin a much awaited price-war. A lot of people that bought i7 1366 now regret the move because it cost too much and there's hardly any upgrade path other than a complete swap. On AMD side, AM3 mainboards will not support the new SKU's so no reason to upgrade.

2) Like Super XP said above.

What sells right now are minor upgrades.
-11 #7 DarkPhoenix 2010-09-24 15:29
Quoting Bl0bb3r:

No argument, means calling out names makes you right ?

Anyway, I won't drop down to the fool level and will get straight to the point:

People that have money represent a minority in a recession. The majority is either losing their job or fighting to keep what they have. The last thing they are thinking about is buying anything right now. They have those pesky rents to pay and feed their young, but I don't expect you to understand any of that.

Weak demand means they have stock piles of products, but can't sell them, because people are simply not buying. The majority is NOT waiting for new products nor upgrades.

Now go back to your bubble. You're better off there.
+3 #8 Bl0bb3r 2010-09-24 16:10
Calling you an idiot is putting it mild... and yapping about me not having an argument makes you an arrogant and ignorant little f#@&. You have the search function and Google, so use them if you want to enlighten yourself about how good businesses do these days.

Anyway... to give you some hints, there are some articles that I remember reading here:
- GloFo planning to triple and that's something they wouldn't do if things would be bad
- Dell makes lots of cash
- Windows 7 sales are up
- Apple reports record whatever
- Intel the same, but earlier
- MS cashed in heavily from Xbox, and later Xbox took a swing at Weeeeee

And none of them plan a complete lineup refresh like AMD, except Intel.
+1 #9 Bl0bb3r 2010-09-24 16:16
AMD on the other hand offer in both their main markets new products, price cuts for older products, but the most disappointing part is the lack of compatibility between BD and the current AM3 mainboards which makes purchasing a new system pointless.

OEM's will think the same. Why invest in current lineup, which they haven't really been that interested in the first place, when something better's around the corner.

But there has to be an idiot or two to challenge that.

Anyway, this is only Q3, in which people were more interested in vacation than purchasing... Q4 with Black Friday and Christmas sales should change that.
-5 #10 DarkPhoenix 2010-09-24 16:59
Yeah, having a discussion with you is pointless...

The majority of people don't even know what's the compatibility between a CPU and a motherboard. Most people buy whole systems and hope they work without problems. Specifically in these news, AMD talks about "weaker than expected demand, particularly in the consumer notebook market in Western Europe and North America,". Do you understand this ? Actually, scratch that...it's obvious you don't.
You keep assuming everyone is tech savy, when it's the exact opposite. The majority doesn't even know if AMD, Intel or NVIDIA is releasing anything new. They buy when they need to and they don't need to, when they have no money, which is what happens in a recession.

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