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.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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