Print 25 comment(s) - last by Wurum.. on Nov 30 at 4:09 PM

It hopes to close the deal in Q2 2013

Advanced Micro Devices (AMD) is selling its Texas campus as a result of the sluggish PC market. 

Chip maker AMD said it will sell and lease back its 58-acre Austin, Texas campus for $150 million to $200 million. It hopes to close the deal in Q2 2013. 

This isn't the first sign of AMD's struggles. In Q3 2012, the company's cash declined $279 million to $1.48 billion. Research firm Gimme Credit also downgraded its rating for AMD from "stable" to "deteriorating." Furthermore, it has been laying off engineers (about 15 percent of its workforce in October 2012) as it attempts to save some cash.

Why the troubles? Mainly because 85 percent of AMD's business relies on the PC market, and the PC market has been taking a hard hit in recent years. 

Since the introduction of mobile gadgets like the smartphone and tablet, PCs have seen a strong decline in sales. Consumers want mobility, and these gadgets combine the power of PCs with the convenience of mobility. Hence, PCs have been down in the dumps.

AMD is currently looking to sneak into other markets in order to stay afloat. In late October, the chip maker announced it was making 64-bit ARM processors for multiple markets. It's starting with its Piledriver Opteron 6300 Series, which will replace the Bulldozer-equipped Opteron 6200 Series. 

Just this month, Reuters claimed that AMD was pursuing a sale, but AMD denied it. It's currently looking into its options, but a sale isn't No. 1 on the list. 

Intel has been in the same PC slump as AMD, but seems to be doing better through these hard times. It posted a better-than-expected $3 billion USD profit in Q3 2012, and has been working hard on its 22 nm Haswell architecture to rival the likes of AMD. Haswell will launch in 2013.

Source: Reuters

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By StevoLincolnite on 11/29/2012 1:57:12 AM , Rating: 4
and these gadgets combine the power of PCs

Did you actually write that with a straight face?

Sure phones are getting faster, but it's still at Intel Atom levels of performance which is no better in terms of IPC than the Athlon XP or Pentium 4.

The benefit however is that they don't have to support legacy hardware and software removing a large portion of the bloat and generally are inferior in terms of multi-tasking.

Heck the games are even basic graphically with allot of 3D games using sprites where-ever-they-possibly-can instead of proper 3D models.

RE: .
By Flunk on 11/29/2012 11:20:51 AM , Rating: 2
For a lot of people, that's fast enough. If all you ever did was surf the web and email, it would be enough.

RE: .
By TakinYourPoints on 11/30/2012 12:02:00 AM , Rating: 2
Doesn't matter, for the way most people use computers, something like a smartphone or tablet do just fine. They are fast enough even for things like word processing, just get a BT keyboard going and you're set.

I'm mainly a PC gamer, been assembling my own since the mid-90s, but I don't kid myself that I'm in a bit of a niche. My own desire for fast hardware doesn't line up with the mainstream. I have a GTX 680 that is great, but I don't kid myself that it is something that only sells in the tens of thousands, not hundreds of millions.

RE: .
By Wurum on 11/30/2012 4:09:37 PM , Rating: 2
I'm with ya. Let's just hope there continues to be enough of us to keep the prices of this hardware reasonable.

RE: .
By Argon18 on 11/30/2012 12:51:52 PM , Rating: 2
You and I may have an 8-core Opteron with 16 GB of RAM and a GTX680, and can appreciate and use its computing power. But 99.9% of the buying public simply doesn't give a crap about hardware specs.

If it does Email, Web, Youtube, and Angry Birds, that's enough functionality and computing power to satisfy most consumers.

PC sales show strong drop?
By TheJian on 11/29/2012 6:37:21 AM , Rating: 2
I'm not quite sure what you guys call a strong drop but, Intel sold 352million chips last year. This year 348million. Unless my math, admittedly quick in my head, is off that's like ~1.2%. In a...Well in the worst economy ever in presidential history (welcome to obamanomics and GREEN waste, 6trillion per term spending etc), we are only down 1.2% in arguably very much luxury items most could do without or just keep hanging on to the old one. I'd say that's a FABULOUS outcome. Perhaps not for AMD because they really did lose sales (mostly to Intel...LOL, which is what happens when your chips are 50% slower), but as a whole Intel isn't doing bad for a down economy. If Intel had sold maybe 300million ok...Down strong as in a 10% drop. But this whole PC market down crap is seriously overblown in a TERRIBLE economy with 20% of american workforce sitting at home on their collective butts. Yes, I count the ones who just quit looking too as we SHOULD count them.

People need to quit saying crap like this. It's not true. Somehow, pc's continue selling. I suspect a large pickup this year as the wait for win8 is now over and it sucks as we all feared. All companies hoping to skip 7, are now faced with 8 sucking so might as well move ahead with win7 plans you thought you might get out of. Their PC's are 5-6 years old now and need replacing or will just die forcing replacement this year. I expect PC sales to rise for 2013 vs. 2012 YOY. Just because they can't hold on to the last rev FOREVER. They'll start dying shortly in mass droves most likely. Granted tablets/phones are stealing some HOME sales, but business is business and I'm not using a tablet at work any time soon...LOL. Phone? You smoking crack? I'll need a pc for years at work...Well I mean, until I'm DEAD. :) If someone tried to tell me to use a tablet or phone (even out to monitor/keyboard) I'd quit my job and look for somewhere to work where they still understand I don't wait on my tablet/phone cpu to put something up on the screen for me. I need my PC to WAIT on me ALWAYS. So they are a long ways from these things stealing any business sales.

The next consoles? That's a whole other story. They are dead. Tablets/phones will make them useless by xmas 2013 or 2014 at the latest (carmack, Valve soft, and Epic Games have all said it, mobile is where we're headed). They will have the worst sales in console history. We'll have 1.5B Tablets/phones (total) being sold next year. Who would you dev for? 50-100million consoles (assuming xmas 2013 launch for ps4/x720 and fairly brisk sales) or 1.5billion tablets/phones that can easily do 1080P out to tv by then. We have better even now at the top end (nexus 10 etc), but I'm assuming just about anything out next xmas will be capable of 30fps at 1080p that gamers would consider fun. IF google had made nexus 10 1920x1080 it would already be an xbox360/ps3 replacement. Unfortunately they aimed at ipad4 res instead of consoles :) This left the gaming playable, but not great like it could have been. I'm hoping someone puts out a 1080p Tegra4 10in that makes the next consoles totally useless in Q1. It might take a Tegra4+ for the xmas model but if it's released like the 3+ was it was quite the boost so they should be very nice if everyone defaults to 1080p (WISELY) by then (with options in game to change up if your tablet comes at 25601600 or something). If consoles die we should get multiple res choices in tablet/phone games I'd hope.

Anyway, please quit with the PC sales dying garbage. IT's not true or Intel is just lying in their quarterly report correct? Is that what you're saying?

RE: PC sales show strong drop?
By FITCamaro on 11/29/2012 7:01:24 AM , Rating: 2
Tablets will not be replacing games consoles in the next year. Sure for casual gamers (Farmville playing idiots) its a market games companies should explore. But for those wanting to play Halo, CoD, Assassin's Creed, Uncharted, and the like, tablets have zero chance of infringing in the console market. You can't build a tablet that will output the kind of graphics current gen consoles can, much less next generation, in a few watt power envelope. And even if you could, why do I want to play on a 10" screen vs. a 50" one. Sure you can have HDMI out on a tablet but now you're talking more power again.

I guess you're wanting something that will hit 130F in your hands.

Now I will say that the next generation consoles will likely have some issues with sales. Many are still satisfied with the current gen consoles. And with the economy in the toilet, there will be many who will find it hard to justify the upgrade. Of course the leeches on society will likely have no issue with buying them (note: not affording, just buying) as proven by nearly every person you see on food stamps or welfare having a smart phone, HDTV, cable, etc.

pc sales
By Soulkeeper on 11/29/2012 7:26:56 AM , Rating: 2
I agree with most of the above post.
Blaming "slow pc sales" or saying the market has somehow collapsed is nonsense.
They are just trying to justify their desire/sacrefice in attempting to move to higher margin, higher growth, more lucrative markets.
Phones have been very good for the hardware makers in the apples and androids of the market.
Problem is, with AMD's current strategies and the overwhelming competition in phone hardware, I just don't see this working out any better for them than desktop/server CPUs.
You can't just make things or jump into a new market and expect to be profitable, you have to make things better/faster/stronger than everyone else (even if only in a niche). Dominate a few niches and you are in the black.
"Good enough" will not cut it for phone hardware anymore than pc hardware imo.

RE: pc sales
By FITCamaro on 11/29/2012 8:46:40 AM , Rating: 2
In markets like China it will.

Why the slow market?
By ICBM on 11/29/2012 10:27:57 AM , Rating: 2
I wouldn't blame phones or even tablets for the slow pc market. When I am mobile, I have no problem using my phone. However when I am home, and I need to look something up, I go to my desktop and do serious browsing, where everything just works and flows better than the touch interfaces of phones/tablets. In front of the TV, I grab the laptop, again much easier browsing experience.

The reason the PC market has slowed down is because there has not been a need to upgrade the standard computer for the past 5-6 years. Lets be honest, a Core 2 Duo or Phenom is a great general computing experience. When things are good, why upgrade. I hate to say it, but Intel/AMD has done it to themselves. They progressed so rapidly, which is awesome for us, but bad for business since the software demands are still low. I would also look to dawn of the SSD bring the market down as well. I can put out $200, slap it into a Pentium D, and people feel like they are running the latest i7. How do you expect people to buy new pcs when you can do that?

By GatoRat on 11/29/2012 11:16:34 AM , Rating: 2
Bulldozer was a total fail for AMD. Pretending that elephant isn't in the corner is a mistake. While consumer desktop sales get publicity, server sales make up a huge portion of the high profit margin chip sales. I wouldn't be surprised if AMD is also doing poorly with corporate desktop sales.

Also, don't discount AMD's poor corporate leadership. It's a badly run company and would be having problems even in a great economy.

I read some of the comments.
By dark matter on 11/29/2012 12:20:54 PM , Rating: 2
And a lot of them are US centric.

For the rest of the developing world, they are more likely to skip a PC entirely and just go straight to mobile devices.

Even in the developed world, a good number of people are turning to tablets and mobiles rather than PC's.

Sure, PC's will still be around for content creators, and for businesses.

But for everyday households, I can't see it to be honest.

A dedicated PC desk, with tower, and monitor, and all the other stuff takes up a large amount of space.

When you can simply dock a tablet onto a keyboard, and do your work on that, most people would be happy to get rid of the PC.

In fact, if I didn't have to use photoshop, I'd be happy to get rid of my desk and PC.

Because of all the bloody wires.

And it would be great to be able to work where I want, whenever the inspiration arose. Be it in the shed, or in the park.

And having played with the Note 10.1 with the pen, I can see this is where the future of photoshop will be anyway. Sure I may STILL need a PC to do this kind of grunt. But I imagine this could be a server, in a cabinet, doing all the grunt, with the tablet as a front end.

In fact, that last idea sounds tremendous. I'm pretty sure Adobe are working on that.

I'm also sure companies would be happier to get rid of all the cabling and get back some of the space from all those PC's.

They could fit more staff in the same sized building then.

Zombie Style
By mrwassman on 11/29/12, Rating: -1
RE: Zombie Style
By TheJian on 11/29/2012 6:56:06 AM , Rating: 2
I don't know of many companies that make money on facebook :)

You try to take my computer away at work (and I'm just IT, so no solidworks etc, but I support that crap) and we'll have a fight to the death ;)

Even stuff like spreadsheets etc, access, etc...There is a LOT of stuff that would just make workers WAIT forever in tablet/phone procs.

Maybe that could happen if PC's don't come up with some new stuff to chew through the cpu cycles in the future. But it will be a few years before I can have 4-8 apps open running and multitask in these the way I do in windows. I don't know of too many people that don't have 4 apps open all day. Outlook (everyone), word/excel/access (most), browser (either for intranet or outside stuff), and whatever else is their jobs specialty app. In my case that might be whatever inventory/support app we use (landesk, BMC, Trackit etc), remote app (at times remoting 5-10 desks at a time with installs going) etc...No way :) I think it's been a while since you've been in an enterprise pc environment. I currently have 32 tabs open, a burning app, 2 word, 1 excel, altbinz and 2 explorer windows open...LOL. Of course Virus is always running too (comodo/threatfire in my case).

It's impossible for anything but a PC variant to do this. At times I have chrome up also (for those pages that don't work in firefox). This is a LIGHT day this morning...LOL. Maybe end 2014 a tablet could replace this experience, but not before then. Also that's assuming apps set in stone and don't come needing more power than today. I can still slow my dual core down to the point I start complaining about not having my quad ivy yet...LOL. Rar or par will crush my experience immediately unless I start setting affinity to make sure I have some cpu left for everything else.

Just because you don't use your computer for anything useful, doesn't mean the rest of us don't. :) I've never been on facebook, twitter etc. They are USELESS and just having an account might get you rejected for some jobs. Personally I hope all those sites die soon ;) A good portion of our workforce's time is spent tweeting or facecrapping all day (did I just coin a new term?...runs off to trademark it before apple)...ROFL. People caught on a cell phone during work (without authorization, such as IT etc who may need to be reached everywhere) should be terminated immediately. :) Call on your breaks, not work time...I digress...

RE: Zombie Style
By othercents on 11/29/2012 8:23:23 AM , Rating: 2
You would be considered part of the 1% that need a faster computer, however most of my employees work on Word, PowerPoint, Excel, Outlook, and Internet Explorer. However they do travel 80% of the time and could use a lighter device with extra battery life. If I can get the Citrix Client to work on a Windows RT then we have everything we need for 99% of my employees with the added benefit of a lighter device.

Many businesses are moving away from the PC model and over to thin clients which is taking away from PC sales, but I doubt we will see a major shift (ie. 20% or more) for 2 - 3 years. The market that is suffering the most is the home pc market. This is where AMD has both processors and video cards. The tablets are cutting out the video card market for them since most business only use the integrated Intel video cards.

Personally I have stopped using a gaming desktop or laptop at home and only use my tablet. It does everything I need at home and since I don't have time for the time intensive games anymore, the games that are available on the tablet works good for me. At some point the tablet hardware and software will catch up to the PCs and games like WOW will be played on the tablet instead of the PC.


RE: Zombie Style
By Cypherdude1 on 11/29/2012 6:41:39 PM , Rating: 2
No one has anything useful they need to do on a computer and therefore the phone works.

When I say no one, I mean 99% of people will never need to use SolidWorks, Autocad, Matlab, Maple, Adobe Premier, Photoshop, etc. (plus video games I suppose)

They just want Facebook for the most part.
"Facebook" LOL. Lots of people use their PC's at home for important work or projects.
Try doing this with a tablet ;^D :

There's also Mathematica, which is actually the easiest of Matlab & Maple to obtain inexpensively. I was going to write how you can't use any of these 3 on a tablet with RT. However, now you can with Windows 8/8 Pro:

I currently have an Intel i7 CPU & 16 GB RAM. I don't use my PC for gaming. What amazes me is I rarely ever use more than 25% CPU cycles. When I start using 80%+ CPU cycles, that's when I'll know I'm fully using my PC.

Having a Windows 8/8 Pro tablet with a quad-core Ivy Bridge or Haswell, 8 GB RAM & 256 GB mSATA, 3.0 USB, external video connectors, quad-speakers, and maybe Wi-Di will perhaps replace a desktop. But, for now, tablets don't have these features.
Quad-Speakers, something I would want:

It's too bad about AMD. Now they have even more competition than Intel right when AMD is just coming out with better CPU's. If AMD could switch over to 22nm instead of their current 32nm, I think their CPU's would have a higher demand. If AMD would start making 22nm, I would seriously consider upgrading to one:

RE: Zombie Style
By mi1400 on 11/29/2012 8:13:08 AM , Rating: 2
I am dia hard AMD fan ,... but since 5-7 years its becoming more convincing that AMD is kinda of politically supressed by organizations i.e. U.S and other half.

1. AMD is not disclosing points of its slavery pact with Intel.
2. AMD Megahertzgovinia type stunts are no where to seen now.
3. gone are the days when AMD used to do following childish stunts.

If Intel can dig in SSDs making why cant AMD jump into same too or gear up existing RAM biz or jump into super fine Camera Sensors. AMD can release Laptops with removeable CPU enthusiast series no matter without warranty and with warnings...

summary is AMD is walking behind Intel head bowed like a slave... If Intel launches some UltraBook .. amd starts making a what slave should make versions of ultrabook... there is something darn fishy going on in AMD ,... so i must discrace my own fanfare and wish AMD a cursed death.

RE: Zombie Style
By GotThumbs on 11/29/12, Rating: -1
RE: Zombie Style
By EricMartello on 11/29/2012 8:13:37 AM , Rating: 2
That's probably true for a lot of people but those of us who use PCs for fun and profit will likely continue to do so indefinitely.

Aside from their stint in the early late 90s and 2000s which was largely driven by their performance:dollar ratio, AMD CPUs have been pretty much garbage all along so I don't know who is actually surprised by this. Intel fumbled with the Pentium 4 but ever since then they've been on their game and have not let up.

The PC market is not dying off; it's changing. Portable devices are an extension and not a practical replacement for all that a PC can do. You could say the PC market is becoming more specialized.

As for AMD...the simple truth is that they have not been putting out a competitive CPU product compared to Intel, and their best product is the Radeon GPU line which is an entirely different market.

RE: Zombie Style
By Wolfpup on 11/29/2012 9:41:32 AM , Rating: 2
I wouldn't use a phone or tablet even to comment on web pages like this. Let alone anything more complex.

Smartphones are nifty, but they're not even remotely in the same category with a traditional PC.

RE: Zombie Style
By TakinYourPoints on 11/30/2012 12:03:15 AM , Rating: 2
Why not? Its easy.

RE: Zombie Style
By Flunk on 11/29/2012 11:09:55 AM , Rating: 2
Deciding to not market smartphone or tablet processors was the worst thing AMD ever did. A few years ago they had a whole line of embedded processors (geode), if they have developed those into processors for smartphones they would be in a much more competitive position today.

At least it's looking like we're not going to NEED x86 chips in the future so Intel is not going to have a monopoly.

RE: Zombie Style
By TheSlamma on 11/29/2012 11:10:58 AM , Rating: 2
Facebook is a handy tool for becoming more and more unemployable.

RE: Zombie Style
By Flunk on 11/29/2012 11:21:36 AM , Rating: 2
You're jut not Facebooking right, if you do it actually makes you more employable.

RE: Zombie Style
By Ammohunt on 11/29/2012 11:36:44 AM , Rating: 2
I think to are mostly correct. I have a gaming rig that i use for email as well. Easily any and all of my non gaming tasks could be moved to something like a MK802 Android 4.0 Mini PC as long as i have a mouse and keyboard; a touch interface sucks for any serious amount of typing. Ths sad truth it that we have never needed the massive amount of computing power that sits on most peoples desks.

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton

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