LONDON – Fabless processor firm Advanced Micro Devices Inc. (Sunnyvale, Calif.) plans to cut up 2,340 jobs or 20 percent of its workforce, according to a Bloomberg report that referenced an unnamed source. Other reports put the job cutting at between 10 and 30 percent of AMD's 11,700 staff.
The cuts are likely to be announced as early as next week, the report said, and are necessary because of weakness in the personal computer market, the main place where AMD processors are used.
AMD announced on Thursday (Oct. 11) that its third quarter sales were lower than previously expected due to weaker demand across all product lines caused by macroeconomic difficulties. It said sales were expected to decline 10 percent sequentially in 3Q12 to $1.27 billion. This is considerably lower than the previous estimate of $1.38 billion and $1.4 billion, which itself would have been sequentially down.
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Two recent market research firms – Gartner and IDC – recently stated that third quarter 2012 PC unit shipments declined by more than 8 percent compared with 3Q11. One reason could be the imminent release of the Windows 8 operating system by Microsoft, expected on October 26.
Purchasers may be putting off PC buys waiting to get a Windows 8 computer. However, Windows 8 will be the first operating system that will run on two processor architectures, x86 as it has done before and ARM. So the advent of the new operating system may provide less of a boost for x86 processor vendors Intel and AMD than OS launches have done in the past.
Remember what the pads and smartphones are designed on, A workstation or several PCs.
The PC is not going away as it has high-end applications that need to be fulfilled on a Worlstation or High-End PC.
I have a Mac Laptop and a netbook. The netbook I use in the bedroom when I just want to look somethink up and it is excellent for that. Other than the external Camera I could use it as a WifFi Pad.
I guess you have missed the fact that almost all of pc makers are releasing new hardware and form factors to go along with windows 8. This includes tablet/hybrids, touch screens, and more advanced touch pads.
First off, good number of folks probably have no interest in trying to update an operating system--for even the mnimally tech savvy, it's hard to understand, but for many folks that exceeds their comfort level. Secondly, why buy a PC and then have to shell out more for an OS upgrade, when you can just wait a bit and get the latest OS? Thirdly, while you can upgrade your PC to Win8, you can't upgrade your PC to touchscreen, and that's a compelling enough option for many folks to wait.
On your second point, I believe you are correct, mostly. x86 is not a niche. But it sure does seem to be heading in that direction.
Why on earth would anyone put off buying a PC, just because a different version of Windows is coming out? Don't these geniuses know that you can update the OS?
Used to be that competing against Intel with another x86 architecture uP was a decent business proposition. But it seems to me that these days, there are just too many other architectures competing against x86, that perhaps that market niche is gone?
We've been watching this train wreck in slow motion for years now. This is especially bad for the Markham office, formerly ATI. In the words of a colleague, "Dave Orton really screwed everyone in Markham. Couldn't have sold to a worse company..."