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  (Source: venturebeat.files.wordpress.com)
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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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?




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