Slower sales in China, Europe hit AMD in the bank

AMD's Q2 results were hit by slow sales in China and Europe, and lower consumer spending

Advanced Micro Devices expects its second-quarter revenue to drop by 11 percent from the first quarter due to slow sales in China and Europe, the company said Monday.

AMD had said previously that its revenue for the quarter, ended June 30, would increase by 3 percent sequentially, plus or minus 3 percent. For the first quarter, it reported revenue of US$1.59 billion and a loss of US$590 million after charges.

AMD released its new Trinity chips for PCs in the second quarter, and had expected those and other products to help expand its sales. It blamed the lower forecast on "business conditions that materialized late in the second quarter."

Along with the slowdown in China and Europe, weak consumer spending affected AMD's OEM (Original Equipment Manufacturing) business, suggesting PC makers bought fewer chips than expected.

The PC market has been growing at a slower-than-expected pace, with more interest in tablets and smartphones for computing. Analysts have predicted weak PC sales growth in the second quarter.

Macroeconomic problems in China, Europe and the U.S. may have softened AMD's business, said Dean McCarron, principal analyst at Mercury Research.

"We're dealing with a global economic problem that affected PC and microprocessor sales," McCarron said, adding that corporate and consumer purchases are also slowing in the U.S.

AMD's business is largely conducted at the consumer level, so it'll feel a larger impact than rival Intel, McCarron said. There will be some impact to Intel, but the effect will be softened by the enterprise business, which is more stable.

The numbers released Monday were preliminary. AMD is due to report its full second-quarter results on July 19.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?