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Tuesday, April 10, 2007
AMD and Intel: what gives?
Apr 10 2007 8:30AM | Permalink | Email this | Comments (5) |
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Advanced Micro Devices is changing its business model. Intel plans to lay off 10,000 workers this year.
Yesterday AMD lowered its Q1 revenue estimates and announced a restructuring plan that will see 2007 capital expenditures reduced. AMD now expects to report Q1 revenue of approximately $1.225 billion, down from the $1.6 billion to $1.7 billion in Q1 revenues the company forecasted in January.
AMD’s arch rival is dealing with its own set of issues. Intel spun off its wireless chip division to Marvel Technology for $600 and is laying off 10,000 workers for an estimated reported cost savings of $2 billion by the end of 2007.
Lower prices and weaker-than-expected sales are two of the main culprits for the projected results.
So do you think it’s ironic that the two companies share what some consider a virtual monopoly in the market are having such lackluster earnings results?
Reader Comments
at 4/10/2007 12:48:09 PM, literati said:
Nothing "ironic" about it. Puzzling perhaps but not ironic.
at 4/10/2007 1:25:11 PM, Tom in Silicon Valley said:
AMD is not changing its business model.
at 4/19/2007 9:11:28 PM, Stephen J said:
What should "They" expect? Instead of continuing the use of new technology to further increase minituarization and power density,they chose to go the "old" way of multicore.Unfortunately,almost none of todays software is capable of utilizing multicore designs to any appreciable advantage. '
at 5/14/2007 7:36:08 PM, SJW said:
The TWO companies are not a monopoly. They are in competition with one another, which is why they are struggling.
at 7/17/2007 12:43:46 PM, Manufacturing Not Design said:
Many years ago (over 15 years) before Intel was the powerhouse today, I was at a conference were an Intel presenter spoke. His words still ring true in my head. He stated that Intel''s core competency is Manufacturing! As the presenter said any graduate level EE student can design a uprocessor on paper. NOW go build it. Intel processor wasn''t the best. But their yields were Unprecedented, and alway lead the industry. You can argue a strong cast that the PowerPC (IBM/Motorola) was a better processor. Where are they now? And unlike other companies, Intel is NOT complacent. They are constantly pushing the manufacturing envelope and investing Billions (thats a B not an M)in R&D, to insure that 10 years from now, it will still be "Intel Inside". Look at their balance sheet, and you decide. AMD is also a good company, but the running joke on the street is "the more they make, the more they lose". And last but not least, let me remind everyone that Moore (no, not Michael the left wing video producer, but Gordon E)was an Intel cofounder. Nuff said. So next time some know it all (except for me of course) asks you want Intel''s business is, tell them its solid state manufacturing, not uprocessor design.
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