In the context of gaming hardware, AMD is right up there with NVIDIA and you really can’t have a discussion about processors without bringing it up alongside Intel. Change the context to the stock market, however and AMD is just another name… one that isn’t doing as well as the other companies mentioned here.
A story by Bloomberg’s Ian King reports that AMD has been forced to cut 710 jobs, or seven per cent of its workforce. This comes off the back off missed sales targets and a drop in revenue of 16 per cent between this quarter and the last ($US1.6 billion to $US1.2 billion).
Occasionally we bring up the topic of PC versus mobile and while the former platform is by no means dead — or even remotely ill — it is facing some challenges against tablets and mobiles. Combined with the ever-present behemoth that is Intel, AMD is having to work hard to maintain a profitable position.
King makes it easy to understand the company’s proposition:
…Intel took in 94.7 percent of the revenue in the PC processor market in the second quarter, while AMD garnered 5.2 percent, according to market researcher IDC. Intel’s chips powered 84 percent of desktop units shipped and 88 percent of laptops. By all those measures, AMD lost ground to its larger rival.
AMD is also battling on two fronts, with its graphics business going up against the rampant NVIDIA. Technically, Intel is a competitor here too, but it helps a great deal when notebooks ship your hardware side-by-side with AMD and NVIDIA’s discrete options.
AMD to Cut 7% of Staff as Sales Forecast Falls Short [Bloomberg, via MCV]