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
I read some of the comments.
11/29/2012 12:20:54 PM
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.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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