July 20th, 2007
AMD losing money like its going out of fashion
Another quarter and AMD loses another chunk of change - $600 million to be exact.
This latest $600 million loss (amounting to $1.09 a share) comes after two previous quarters of loss - $574 million during Q4 2006 and $611 million for Q1 2007. Sales rose but revenues slumped due to the aggressive price war AMD is having with Intel. AMD executives are now pinning their hopes on the quad-core Barcelona, due out August, to boost revenue over the second half of the year.
The direction that AMD is headed worries me because over the past year Intel’s main competitor has been hammered so much that it now doesn’t offer Intel much of a challenge, and there’s always a danger that a complacent Intel will fall back to the lazy 486 days where innovations were few and far between. Sure, Intel has come out with some killer products lately, but this has been in response to AMD. Without AMD, I fear that things to stagnate over at Intel.
I’m hoping that AMD has some killer desktop processors lined up for 2008.
Thoughts?
Adrian is a technology journalist and author who has devoted over a decade to helping users get the most from technology. He also runs a popular blog called The PC Doctor. See his full profile and disclosure of his industry affiliations
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