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Advanced Micro Devices on Monday lowered its revenue guidance for the quarter citing slow demand for its accelerated processing units by end-users and PC makers. The company expects its revenue and profitability to be lower than originally anticipated.
AMD claims that its sales in Q2 will be approximately 8 percent lower than revenue for the first quarter, or about $950 million, which will be AMD’s lowest revenue in more than a decade. The sequential decrease is primarily due to lower than expected consumer PC demand impacting the company's original equipment manufacturer (OEM) APU sales. AMD believes that its second quarter channel sales and channel inventory reduction efforts will be in-line with its plans.
AMD also said that its non-GAAP gross margin will drop to 28 per cent because of higher mix of semi-custom products in its mix.
AMD did not reveal whether demand for its “Carrizo” accelerated processing units for notebooks was lower than expected, or demand for its “Kaveri” product dropped because of competing offerings from Intel.
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KitGuru Says: Since AMD is stretching lifecycles of its APUs to over two years, it is not really surprising that demand for its chips is getting lower, especially keeping in mind that sales of PCs are weak in general these days.
carrizo is also receiving poor demand coz everyone knows in cpu segment intel is clear winner.
in gpu segment intel did really well and matches amd……….so why anyone will touch amd..??? i know amd has gr8 gpu arch but thats useless coz pathetic 25gb/s bandwidth limitation … until amd uses HBM on APU ,,,people will not choose AMD.
So AMD, tight ur brain’s screw and realize that u hv no big enough gpu edge …….use HBM or sit in deep hole and enjoy…
To be fair, notebooks with the A10-8700P CPU are priced reasonably well and outshine intel’s offerings. If you want that GPU power in an intel CPU, you need one with the latest Iris iGPU and those are expensive.
Buddy its very difficult to find carrizo apu based notebooks in stores
That’s because most OEM’s are waiting for Win10 to launch. Retrofitting half your AMD – based portfolio 1-2 months after introducing it is not worth the hassle.
Bro completly agree with u. I hv sony vaio with i5 sandy bridge and my best friend who is an it engg has amd trinity based hp….both notebooks hv 6 cell,,win7 64, 4gb ram….. but his notebook gives straight 5hr 30 min 720p video playback while mine is at most 30 min… i dont know how but i must say apu r gr8 products.
But i also noticed one thing that people buy amd only in cheeper price bracket and if amd want share in 700$+ market i think they should use hbm 2.0 Coz that move will clean sweep intel offerings.
Now each stack of hbm costs around 30$ so if they use 4gb hbm 2.0 Running at standard 256 gb/s on apu they will surely attract peoples… just hoping we will see zen based apu with hbm 2.0
Unfortunately, Zen – based APUs won’t be around until late 2017 and the implications are quite shocking:
2. AMD’s iGPUs will be inferior to intel’s Iris iGPUs for more than another 2 years.
3. AMD will continue producing APUs based on an outdated CPU architecture (Bulldozer) with an outdated manufacturing process (28 nm) for more than another 2 years.
3. After finally launching a competitive high -end CPU line-up (Zen) in H2 2016, AMD’s flaships CPU’s will remain iGPU-less for at least another year which is a complete disaster on a market where nobody is buying discrete graphics cards any more.
3. no one is buying dGPU’s anymore?
Um… nVIDIA recorded record revenue for the last 2 quarters, and dGPU’s are still dominate in Steam hardware surveys.
No one is buying APU’s because, A) they are on laptops and the majority of people game on phones and tablets if not at home on a desktop, and B) pairing a weak CPU with a good GPU that requires high frequency memory doesn’t help with demanding games that you want to play AAA games on with IQ above Medium.
Yeah, because they should have released zen two years earlier than they are.