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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

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:

"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki