Breaking News

KIOXIA Introduces EXCERIA BASIC SSD Series for Affordable PCIe 4.0 Upgrades First look at PlayStation’s 27” Gaming Monitor New Transcend CFexpress 830 Type B Targets 8K RAW, High-Speed Shooting, and Pro Video Production Firewalla Launches MSP 2.9: Introducing FireAI Search, AP7 Wi-Fi Management, Enhanced User Support, Mobile App Access Control Elgato Launches Retail-Exclusive, Discord-Edition Stream Deck Mini

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map

Search form

Slow Game-Console Chip Demand Will Have Negative Effect on AMD Sales

Slow Game-Console Chip Demand Will Have Negative Effect on AMD Sales

Enterprise & IT Jul 30,2019 0

Advanced Micro Devices Inc., the No. 2 maker of computer processors, gave a lower that expected third-quarter sales forecast, indicating low orders for game-console chips from Microsoft and Sony.

Revenue in the current period will be about $1.8 billion, AMD said Tuesday in a statement. The company also pared its forecast for annual revenue.

While sales of PC-related products are improving, the company said revenue is taking a hit because demand from game-console makers is falling short of its original forecasts this year. In the second quarter, revenue in the division that includes server processors and custom chips for consoles declined 12%, AMD said.

The company’s second-quarter net income fell to $35 million, compared with $116 million a year earlier. Revenue in the period was $1.53 billion, 13% lower than a year earlier.

Gross margin, or the percentage of sales remaining after deducting the cost of production, widened to 41% in the second quarter. A year earlier, that measure of profitability came in at 37%.

AMD said it expects full-year revenue to gain at a percentage in the mid-single digits. At the same time, the company slightly raised its forecast for gross margin for all of 2019, to 42%. The sequential and year-over-year increases are expected to be driven by Ryzen, EPYC and Radeon product sales.

Under Lisa Su, AMD is trying to stage a comeback in the business of chips for servers. After owning about a quarter of that market a decade ago, delays to new chips and a failure to keep boosting performance allowed Intel to banish AMD to less than 1% market share. AMD’s new Epyc range of server processors is aimed at clawing back those lost orders.

AMD is also trying to exploit Intel’s delays in shifting production to more advanced technology. AMD now outsources manufacturing of its best chips to Taiwan Semiconductor Manufacturing Co., which seems to be more than a year ahead of Intel in implementing new processes.

At the end of last year, AMD had 3.2% of the market for server chips, up from 0.8% 12 months earlier.

Tags: AMD
Previous Post
Trade Tensions Jeopardize Samsung's Profit
Next Post
Apple Reports Revenue Record Despite Slow iPhone Sales

Related Posts

  • ASUS Announces Turbo Radeon AI Pro R9700 32GB Graphics Card

  • AMD Introduces EPYC Embedded 4005 Processors for Low-Latency Applications at the Edge

  • AMD announces Instinct MI350 Series GPUs

  • IBM and AMD Join Forces to Build the Future of Computing

  • AMD Introduces New Radeon Graphics Cards and Ryzen Threadripper Processors at COMPUTEX 2025

  • AMD Announces Press Conference at COMPUTEX 2025

  • ASUS Republic of Gamers Unveils Crosshair X870E Extreme, Apex Motherboards

  • ASRock gives more information about AMD CPUs and their products

Latest News

KIOXIA Introduces EXCERIA BASIC SSD Series for Affordable PCIe 4.0 Upgrades
PC components

KIOXIA Introduces EXCERIA BASIC SSD Series for Affordable PCIe 4.0 Upgrades

First look at PlayStation’s 27” Gaming Monitor
Gaming

First look at PlayStation’s 27” Gaming Monitor

New Transcend CFexpress 830 Type B Targets 8K RAW, High-Speed Shooting, and Pro Video Production
Cameras

New Transcend CFexpress 830 Type B Targets 8K RAW, High-Speed Shooting, and Pro Video Production

Firewalla Launches MSP 2.9: Introducing FireAI Search, AP7 Wi-Fi Management, Enhanced User Support, Mobile App Access Control
Enterprise & IT

Firewalla Launches MSP 2.9: Introducing FireAI Search, AP7 Wi-Fi Management, Enhanced User Support, Mobile App Access Control

Elgato Launches Retail-Exclusive, Discord-Edition Stream Deck Mini
Consumer Electronics

Elgato Launches Retail-Exclusive, Discord-Edition Stream Deck Mini

Popular Reviews

be quiet! Dark Mount Keyboard

be quiet! Dark Mount Keyboard

Terramaster F8-SSD

Terramaster F8-SSD

be quiet! Light Mount Keyboard

be quiet! Light Mount Keyboard

Soundpeats Pop Clip

Soundpeats Pop Clip

Akaso 360 Action camera

Akaso 360 Action camera

Dragon Touch Digital Calendar

Dragon Touch Digital Calendar

Noctua NF-A12x25 G2 fans

Noctua NF-A12x25 G2 fans

be quiet! Pure Loop 3 280mm

be quiet! Pure Loop 3 280mm

Main menu

  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed