In April, AMD announced good first quarter financial results but warned that second quarter sales would end up "flat to slightly down." If a new report by CNet is to be believed, this claim may turn out to be somewhat of an understatement. CNet says AMD expects revenue of $1.21 billion for the second quarter, 7% less than predicted by analysts and a whopping 9% below the previous quarter's $1.33 billion. For reference, the drop from last year's fourth quarter to this year's first was only 1.5%, and the usual drop between first and second quarters is 2-4%, according to Mercury Research Analyst Dean McCarron.
McCarron also tells CNet the PC market's slowing growth could be a factor in AMD's poor results. Indeed, worldwide PC shipments are expected to grow by only 10% this year, compared to 15.9% last year and 14.7% back in 2004.
- GPU price analysis: AMD undercuts Nvidia in multiple segments[99]
- It's good to talk about it[86]
- AMD counters CUDA with renewed ATI Stream initiative[79]
- PC gamers rush to new blockbusters[73]
- JPR: PC gaming hardware market is 'bigger than thought'[71]
- Mirror's Edge PC to use PhysX effects[54]
- AMD postpones 'Fusion' to 2011, rethinks mobile roadmap[52]