AMD Looking to Sell Texas Site As PC Sales Continue to Nosedive
November 29, 2012 1:25 AM
comment(s) - last by
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
, 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,
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.
This article is over a month old, voting and posting comments is disabled
PC sales show strong drop?
11/29/2012 6:37:21 AM
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?
11/29/2012 7:01:24 AM
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.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
Reuters Claims AMD is Pursuing a Sale, AMD Denies it
November 14, 2012, 1:03 PM
AMD's New Piledriver Opterons Claim to Match Intel's Performance at Half the Price
November 5, 2012, 4:32 PM
AMD to Make 64-Bit ARM Processors for "Multiple Markets", Starting With Opterons
October 30, 2012, 1:03 PM
AMD Set to Restructure After Poor Q3 Earnings, Layoff 15% of Workforce
October 19, 2012, 9:05 AM
Intel Beats Expectations, Posts $3B USD Profit
October 17, 2012, 11:40 AM
"Prepare to be Punished": Microsoft is Killing OneDrive With Cuts, Blames Users
November 3, 2015, 8:23 PM
Apple's New "Magic" Peripheral Line Packs High Tech, High Prices
October 13, 2015, 9:39 PM
Samsung Adds 2 TB 850 EVO, PRO SSDs for $800, $1000
July 7, 2015, 4:23 PM
Seagate Senior Researcher: Heat Can Kill Data on Stored SSDs
May 13, 2015, 2:49 PM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information