Trouble for chipmaker Advanced Micro Devices (AMD), which issued a warning this quarter’s revenue would be about 25% below Q3’s results of $1.59 billion. By our maths, that means about $1.19 billion, well below consensus estimates of $1.54 billion for the quarter.
What’s wrong? Well, the miserable economy for one. But a horrid market for PC sales is only part of AMD’s problems. The company is also losing the technology battle against arch-rival Intel (INTC). Analysts Craig Berger and Robert Pikover at FBR Research explain:
Global macroeconomic contraction is causing demand deterioration… Further, we think AMD’s relatively stale product offering of desktop and mobile chips (no 45 nm yet) means its business is faring worse than Intel’s business as Intel takes share
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.